Chart of the Day - Wednesday, April 26th, 2023

Today’s Chart of the Day was shared in note by John Roque (@daChartLife) It's a weekly chart of the Russell 2000 over the past 8½ years. John points out that the Russell 2000 is skating on thin ice again as it tests the 2018/2020 highs around 1700. It's already tested this level several times in the past year. Typically, the more times a level is tested, the weaker it becomes as each test absorbs more and more demand. It's also weak on a relative basis considering it's at three year lows versus the S&P 500. Small Caps often lead the broader market higher or lower, so this is arguably one of the most important levels to watch right now.