Very Simply, small caps are on fire!
Note the small green horizontal line.
That is the new July 6-month calendar range high.
IWM handled it like a champ!
Plus, look at the leadership chart.
IWM outperforms 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 cylinder’s 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.
Today Mish appeared on Schwab. She covers:
The Inside Sectors Or Economic Modern Family
Along with the Family, bitcoin, solar, biotech, the election
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Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
