Chart of the Day - Friday, July 18, 2025

🏆 Today's Chart of the Day was shared by Subu Trade (@SubuTrade). 
 

• The Russell 2000 closed marginally higher this week, with futures gaining just +0.15%. It's been chopping sideways for two weeks now, building potential energy for the next decisive move. 
   
• Unlike its large-cap peers, the Russell hasn't seen a record high since 2021, currently down -8.3% on a closing basis. It has lagged the S&P 500 by a wide margin in recent years, but it has slightly outperformed since the April 8th low.
   
• It's up twice as much as the S&P 500 this month, but Subu notes that positioning remains aggressively negative. Large speculators haven't been this short since the 2022 bear market bottom. Potential short-covering could fuel a move to record highs in the coming months. 
   

The Takeaway: Despite its recent leadership, large speculators remain aggressively short the Russell 2000, and potential short-covering could fuel a rally to all-time highs in the coming months.