🏆 Today's Chart of the Day was shared by Evan Medeiros (@EvanMedeiros).
- The Russell 2000 ($IWM) fell for a third straight session, slipping back below its October highs, around $250.
- Evan notes that last week’s breakout could turn into a Bull Trap after failing to see upside follow-through and closing slightly below $250 today. With Small-Caps leading the recent bounce, this failure also sets a bearish tone for the broader market
- Despite cracking key support today, $IWM remains firmly above its prior-cycle highs from 2021. Small-Caps often lead around the turn of the year, but if $IWM bucks its seasonal trend, it will be a potential red flag.
The Takeaway: $IWM is vulnerable to a Failed Breakout after throwing back to former resistance from the October peak. Holding or reclaiming $250 would open for Santa, but losing this key level could be a problem for Small Caps and the broader market.
