Chart of the Day - Wednesday, July 2, 2025

🏆  Today's Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). 
 

• The Russell 2000 ($IWM) flipped positive on the year today after being down more than -20% YTD. The index has notably outperformed its large-cap peers since its annual reconstitution at the end of June.
   
• Mike points out that $IWM closed above its 200-day moving average for the second straight day. Momentum remains strong, with RSI printing its highest reading since November, closing just shy of overbought at 69.58. 
   
• $IWM hasn't seen a record high since 2021, although it came very close in November. While it remains -9% below its peak, there's little preventing $IWM from completing its recovery in the coming months. 
   

The Takeaway: The Russell 2000 ($IWM) closed above its 200-day moving average for the second straight day. With price at a four-month high and momentum at a seven-month high, Small-Caps could make another attempt at record highs before the year is over.