Chart of the Day - Monday, November 16th, 2020

Today’s Chart of the Day was shared on Twitter by Sarah Ponczek of Bloomberg (@SarahPonczek). It's a chart of the Russell 2000 over the past decade. On Election Day, we discussed the potential for a post-election surge in Small-Caps, and it sure looks like that's happening. As Sarah points out, the Russell 2000 is having it's best 11-day rally since 2011. Perhaps more importantly, the index closed at an all-time high for the first time in more than two years on Friday. This is further evidence of broadening participation and risk appetite among market participants. According to seasonality, the Russell 2000 has historically outperformed the S&P 500 from November-March. After making zero progress in the past two years, could the Russell 2000 finally be ready for a meaningful leg higher? Stay tuned!