Russell 2000: Should There Be a Pullback, Look to Get in at These Levels
2024.07.17 03:09
The has been on fire of late. Take a look at the chart – has ripped through resistance to reach a new 6-month high.
This impressive rally underscores the recent strength in small-caps and could signal a broader market upswing on the horizon. The leadership chart further reinforces this bullish sentiment:
IWM is now outperforming the benchmark. Finally, look at the momentum chart or Real Motion. Momentum is flying alongside price. What does this all mean?
Back in January 2022, IWM traded at 227 while the all-time high was made in June 2021 at 233,64.
That makes 227 an interesting point to watch. Furthermore, should IWM get any correction, the July range high gives you a support level at 218-219.
Finally, with all cylinders firing, until we see a bearish momentum in divergence, or the price fails the July range support with momentum holding, the gameplan is stay the course.
ETF Summary
- S&P 500 (SPY) New all time highs and 5600 pivotal
- Russell 2000 (IWM) January 2022 IWM ran to 227 before the big collapse-take some profits if long
- Dow (DIA) New all time highs
- Nasdaq (QQQ) 500 pivotal and still working off that nasty bearish bar on the chart
- Regional banks (KRE) 55 now support with 60 next level to watch
- Semiconductors (SMH) 260 -280 range
- Transportation (IYT) 67 now support
- Biotechnology (IBB) I still like this sector-152 resistance
- Retail (XRT) Granny got her groove-now 77.50 support
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) Multi-year highs
