If you're looking for a top, STOP. We're closer to the beginning of the move, not the end. pic.twitter.com/TTHBYHQxfM
— JasonLeavitt (@JasonLeavitt) November 23, 2020
Today’s Chart of the Day was shared by Jason Leavitt (@JasonLeavitt). It’s a monthly candlestick chart of the Russell 2000 ETF, $IWM, over the past four years. There’s been a ton of buzz about Small-Caps lately, and rightfully so. The Russell 2000 has surged more than 18% in November, putting it on track for its best month ever. It’s easy to look at a move like this and say price has gone “too far too fast.” However, it’s important to consider that Small-Caps have made zero forward progress in more than two years. From this perspective, it certainly appears as though we’re in the early innings of a new cyclical bull market.