Chart of the Day - Friday, August 25, 2023

Today’s Chart of the Day was shared by Eric Conrads (@conradseric). The Russell 2000 ($IWM) closed lower for the fourth straight week but formed a doji candle as it only fell -0.35%. The other major indices have trended higher in recent months by making higher highs and higher lows. Those uptrends have remained intact even with the recent pullback. However, $IWM continues to be trendless and rangebound between $170 and $197. It's made higher lows but has yet to achieve higher highs. Conrad points out that it's forming an ascending triangle pattern after flirting with the 200-week moving average for over a year. If the Russell 2000 ever breaks out, breadth would likely improve dramatically, but it's fumbled every opportunity it's had.