— Elena Popina (@lena_popina) November 30, 2021
Today’s Chart of the Day was shared by Elena Popina (@lena_popina). It’s a chart of the Small-Cap Russell 2000 Index over the past year. There’s an old adage about failed breakouts – “from failed moves come fast moves in the opposite direction”….and that’s exactly the case for the Russell 2000 right now. The index broke out to an all-time high at the beginning of the month after being stuck in a tight range for the majority of the year. That breakout quickly failed, and it has taken just 15 trading days for the Russell to fall 10% (9.98% on a closing basis to be exact). Small-Caps often lead the broader market higher or lower. So, it’s concerning to see them fall so precipitously. If the Russell 2000 can’t catch a bid soon, it would suggest further downside for the broader market.