Chart of the Day - Tuesday, September 28th, 2021

Today’s Chart of the Day was shared by Wyckoff Analytics (@WyckoffAnalysis). On top is Russell 2000 vs. the Nasdaq ($IWM/$QQQ) over the past two years, with the 10 year US Treasury yield below. Interest rates continue to move higher, with the 10-year yield rising for the fourth consecutive day today. This spike in yields has been driving a lot of the action we're seeing in the major equity indices this week. Over the past 5-days, the Russell 2000 is up 1.73%, while the Nasdaq 100 is down 1.71%. As you can see, $IWM/$QQQ moves nearly in lockstep with the 10-year yield. It wouldn't be surprising to see yields pause in the very near term given the four-day winning streak, but if yields do continue higher, expect the Russell 2000 to outperform the Nasdaq.