🏆 Today's Chart of the Day was shared by @cantonmeow.
- The Russell 2000 ($IWM) led the major indices to all-time highs today as the Fed cut the interest rate by 25 basis points. This is the first record high since late October, and Small-Caps have led since the November low.
- $IWM is on track for its first eight-month winning streak since 2021, and ’tis the season for Small-Caps. It has seen several whipsaws around the former highs at $240–$250, but a four-year breakout remains in play.
- Despite the bullish backdrop, sentiment is still subdued, with the CNN Fear & Greed Index stuck on “Fear.” It’s not the most reliable sentiment gauge, but this certainly isn’t the type of euphoria you’d expect to see at a major top.
The Takeaway: Small-Caps ($IWM) broke out to record highs for the first time in nearly two months, yet sentiment remains far from euphoric.
