Chart of the Day - Wednesday, November 20th, 2019

Today's Chart of the Day was shared on Twitter by Ross Haber (@RossHaber_). It's a daily bar chart of the Small-cap Russell 2000 index. The index has lagged the other major indices for the majority of the year; however, it's looking like it could breakout soon. Price has been consolidating for the past thirteen trading days at a well-defined resistance level. The index has failed to break out of the 1600 level several times this year. You can think of these resistance tests like punching a wall, where every time you hit it, the wall gets weaker and weaker. Price action over the past two weeks suggests that the index is absorbing some of the supply at this level and setting up for a breakout.