Chart of the Day - Monday, July 19th, 2021

Today’s Chart of the Day was shared by Yuriy Matso (@yuriymatso). It's a 4-hour candlestick chart of Russell 2000 futures over the past six months. All eyes are on the Small-Cap Russell 2000 right now as it tests a crucial support level. As we know, Small-Caps often lead the broader market higher or lower. The index peaked in mid-March and has been rangebound (between 2,100 and 2,350) ever since. Yuriy points out that we're currently testing the lower bounds of that range, around 2,100. This level has acted as support three times already this year. Will the fourth test be a success? A bounce here has the potential to stick save the broader market. However, a break below this well-defined level would hint at further market weakness. Either way, the Russell 2000 is about to give us some valuable information, so pay attention to how price behaves around that 2,100 level!