Chart of the Day - Tuesday, August 27th, 2019

Today’s Chart of the Day was shared on Twitter by Dan Russo of Chaikin Analytics (@DanRusso_CMT). It's a daily candlestick chart of the Small-cap Russell 2000 index over the past year. The Russell 2000 has been in focus recently as it continues to underperform the other major indices. Today, it fell beneath the June low and closed at the lowest level since mid-January. Relative weakness from Small-cap stocks is undoubtedly an area for concern for the overall market because it indicates a lack of risk appetite. Dan points out that one positive development on this chart is the fact that RSI never reached oversold levels. Small-caps will need to catch a bid soon for the broader market to continue higher.