Chart of the Day - Tuesday, November 3rd, 2020

Today’s Chart of the Day was shared on Twitter by Yuriy Matso (@yuriymatso). It's a weekly candlestick chart of the Small-Cap Russell 2000 index over the past 13 years. Yuriy points out that the Russell 2000 currently looks very similar to how it did leading up to the 2012 and 2016 elections. In both scenarios, price broke out to all-time highs and continued higher in the weeks/months post-election. To be fair, the sample size is tiny here, and the index went on to make new lows in the weeks after the 2008 election. But it's certainly some food for thought given the recent outperformance we've seen from Small-Caps. The Russell hasn't hit an all-time high in more than two years and we're currently about 7% below those former highs. Will Small-Caps see a similar post-election surge like they did in 2012 and 2016?