After 14 weeks of moving sideways, the small cap index, Russell 2000 $IWM is back re-testing the December 2016 multi-month highs.
We briefly broke above this 138 area in late February, but ultimately couldn’t maintain higher prices for very long and traded back down towards the middle of the range.
Over the course of this week we saw buyers stabilize the IWM as we undercut last weeks low, reversed, and are set to close above last weeks highs after a data heavy week.
These are constructive developments and bulls will want to see this market hold onto gains and get traction above 138 into next week for renewed momentum.
If we can’t hold above 138, expect more messy two-way trading and chopping around until we break out of our four point, 134 – 138 range.
I’ll have more analysis on this and all of the major markets in our weekend youtube market recap video.
Happy Saint Patrick’s Day, have a great weekend, and don’t forget to register for our webinar this Tuesday on Market Regime Filters.