The S&P 500 (SPY), Nasdaq 100 (QQQ), and Dow Jones Industrials (DIA) all closed under recent highs, while the Russell 2000 (IWM) was able to close over 178.10 making new all time highs.
It’s no easy feat for the small caps to outperform the major stock market indices, especially with the recent news of Tesla entering the S&P 500.
Furthermore, the Russell 2000’s (IWM) superior strength paired with its ability to scale the charts to new highs leads me to believe that IWM has revealed itself to be… Spiderman!
Spiderman is known to have powers such as sticking to walls, increased agility, and wrists that shoot sticky webs.
He also has a unique spider-sense ability which alerts him to incoming danger.
Above is a chart of the four stock market indices with IWM on the top right.
The Nasdaq 100 (QQQ) has been stuck under the 303.50 high from September, which indicates a rotation out of the tech heavy index.
The Dow Jones Industrials (DIA) and the S&P 500 (SPY) show a close resemblance to each other as they both will need a move over Monday’s high to be able to compete with Spiderman (IWM).
Spiderman’s increased move upwards could have something to do with the Harley Davidson motorcycle he’s riding, though he should still be careful now that the S&P 500 has a shiny new Tesla in its possession.
As this week continues, now that IWM shows to be quite the superhero, we will watch to see if the Retail Sector, can also make new highs.
That power couple along with the Transports (IYT) make quite a formidable protection for the bulls.
S&P 500 (SPY) 364.38 high to clear.
Russell 2000 (IWM) New all time high.
Dow (DIA) Needs to close over 300.00
Nasdaq (QQQ) Watching to break election range at 295.39.
KRE (Regional Banks) Holding over 48.83 last week’s high.
SMH (Semiconductors) Needs to clear 202.89 with support at 190.
IYT (Transportation) New All time highs.
IBB (Biotechnology) 136.40 support the 50-DMA and 143.36 Resistance.
XRT (Retail) 56.56 high to clear.
Twitter: @marketminute
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
