Chart of the Day - Tuesday, December 17th, 2019

Today’s Chart of the Day was shared in a blog post by Chris Kimble (@KimbleCharting). It's a weekly bar chart of the Mid-Cap ETF, $MDY, over the past decade. In the blog post, Chris points out that Mid-Caps are knocking on the door of all-time highs. Chris begins by establishing that the primary trend is higher, and he shows that the ETF has spent the majority of the past 7-years inside a rising channel. He goes on to explain that $MDY peaked last September, followed by a swift 20% correction at the end of 2018, which brought price down to the bottom of the rising channel. $MDY found support at the rising channel and went on to rally about 30% over the next 12-months, to where it sits now, testing record highs. Large-Caps ($SPX) have already surpassed last year's peak and have been printing all-time highs for weeks now. It would be bullish for the broader market to see Mid-Caps, and eventually, Small-Caps follow suit.