88% upside day at 11:30. And, as it turned out, this chart *was* kinda important… pic.twitter.com/g0mDbQ21UC
— Walter Deemer (@WalterDeemer) August 27, 2021
Today’s Chart of the Day was shared by Walter Deemer (@WalterDeemer). It’s a daily bar chart of the Small-Cap Russell 2000 ETF, $IWM, over the past 11 months. The Russell 2000 ended the week on a positive note, busting through its 50-day moving average and closing at its highest level since July 12th. Also, the Russell 2000 outperformed the other major indices this week by a long shot, gaining 5% while the S&P 500 rose 1.5%. Small-Caps have been range-bound for the majority of this year, and they remain locked in that range. However, it’s a huge win for the bulls that they didn’t die at crucial support this week. As we know, Small-Caps often lead the broader market higher or lower. The next objective will be to see how price behaves at the upper bounds of the range, around $233. As we discussed earlier this week, Small-Caps have a bullish seasonal tailwind relative to Large-Caps over the next couple of weeks (end of August until mid-September). At this rate, it’s entirely possible that the Russell 2000 tests record highs next week.