You should be watching the russell right now
The small caps (IWM) have been dead weight for the past several months, ever since June when they topped out above 128. But more recently, the past couple of weeks, the small caps have started to firm up near their September highs. Suddenly this group of stocks looks interesting as they consolidate at this resistance area.
The SPY has been able to rally the past few weeks without any real participation from the small caps. If we do start to get this breakout in the IWM above 116, we could get a new surge of momentum to take the broad market higher. If you’ve been stubbornly fighting the market as it’s grinded higher throughout this month you better pay close attention to the Russell. I would not want to fight this wave if this group of stocks get’s going.
Enjoy what you read? Share it below and be sure to tag @thetraderisk.