Chart of the Day - Thursday, July 22nd, 2021

Today’s Chart of the Day was shared by Adam Koós (@AdamKoos) It's a daily candlestick chart of the Russell 2000 ETF, $IWM, over the past 10 months. On Monday, we took a look at the Russell 2000 as it was testing a crucial support level for the fourth time. Fortunately for the bulls, the fourth test was a success! However, even with the strong rebound on Tuesday and Wednesday, $IWM continues to be rangebound between $210 and $234. This four-month range appears to be a healthy consolidation phase, given how strong the prior trend was. Adam adds, that momentum has remained bullish throughout this consolidation, with RSI never reaching oversold conditions. Small-Caps tend to lead the broader market higher or lower. So, it would be a big positive for the broader market if the Russell 2000 does eventually resolve higher out of this consolidation.