— Aksel Kibar, CMT (@TechCharts) August 19, 2021
Today’s Chart of the Day was shared by Aksel Kibar (@TechCharts). It’s a daily candlestick chart of the Small-Cap Russell 2000 ETF, $IWM, over the past year. All eyes are on the Russell 2000 as it tests a crucial support level for the fifth time this year. As you can see, Small-Caps have been stuck in a well-defined range between $211 and $233 since March, and we’re once again testing the lower bounds of that range. Will the fifth test be a success? One thing that makes this test unique from the past four is the fact that we’re also testing the 200-day moving average (red) for the first time in nearly a year. Small-Caps often lead the broader market higher or lower. So, it would be hard to overstate just how important this test is to the broader equity market. Either way, the Russell is about to give us some valuable information, so pay attention to how $IWM behaves around $211 in the near term.