Chart of the Day - Tuesday, January 17th, 2023

Today’s Chart of the Day was shared by David Cox (@DavidCoxRJ). It's a weekly candlestick chart of the iShares Micro-Cap ETF, $IWC, over the past five years. $IWC rose 6.7% last week, marking the best week for Micro-Caps since they peaked nearly two years ago. David points out that Micro-Caps have decisively broken above their downtrend line. Meanwhile, Large-Caps continue to battle with their respective downtrend line. We often say Small-Caps tend to lead the broader market higher or lower, and that's even more true of Micro-Cap stocks. These are companies with less than $300m in market cap, so they tend to be riskier and more aggressive. After dropping as much as 35% last year, Micro-Caps are still down about 26%. However, this is an encouraging development for the bulls. Will the S&P 500 follow suit?