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Very interesting pattern in IWM since middle of June 2022, when it reached the low 160s for the first time.
Since then three attempt at taking out 200 failed.
Now recently it has rebounded from the famous 161 level again, which it had reached when it started declining in earnest from the July / August 2023 highs.
“During this plunge, the Russell 2000 lost 18.27%, essentially a crash in small caps.” This is from the free update summary by Robert McHugh.
What I do find interesting is that these technical trades … “expected bounce from levels” work for a short period.
Then going back further in time, in Feb 2020, it plunged from the 161 level to scary lows of 95-96 during the Covid crash.
Something has to give in IWM.
Please share TA.
GL
Yes GL. Looking at a four year chart you see a bear market in IWM. So even while the S&P & NASDAQ have had big rallies since Oct. 2022 the IWM was in a flat trading range until this most recent twenty percent drop that took out the lows of the last two years. It was a small but important breakdown. Now that the market has bounced, IWM could get to 180 which represents a 50% bounce from it’s most recent decline. It and the rest of the stock averages will be heading down in 2024.
Not sure but I think small caps are heavily weighted toward regional banks.
Nuf said.
There are many regional banks in the IWM but financials are only 21% of the IWM and not all of them are regional banks. Broad based covering most industry groups and a better reflection of stockmarket as a whole.