— Ian McMillan, CMT (@the_chart_life) May 31, 2022
Today’s Chart of the Day was shared by Ian McMillan (@the_chart_life). The Russell 2000 has rebounded 9% over the past couple of weeks after successfully testing long-term support. However, it’s still down more than 23%, and as Ian points out, it remains stuck under an important resistance level around 1900. This level was support in January, February, and March, but it eventually broke in April. It also coincides with the VWAP from the Covid lows (blue). If it can break above 1900, the next major resistance level is about 10% higher around 2100. If it gets rejected here, it would suggest further pain for the broader market. Either way, there will be some valuable information to be gleaned from how this test plays out.