Chart of the Day - Thursday, May 27th, 2021

Today’s Chart of the Day was shared by Andrew Adams (@DayTraderGator). It's a daily candlestick chart of the Russell 2000 ETF, $IWM, over the past nine months. The Russell 2000 has perked up over the past two sessions and is now outperforming the broader market by a decent margin this week. It has been in a consolidation phase since February. Not surprisingly, this consolidation occurred at the 1.618% Fibonacci extension of the Covid crash. The past few months have been a choppy mess but as Andrew notes, price and momentum have refused to break down in a meaningful way. We're now firmly above the  50-day moving average, and all-time highs are less than 4% higher from here. Fresh highs would be a clear indication that this consolidation period is over, and that a new uptrend is developing.