Chart of the Day - Thursday, June 29, 2023

Today's Chart of the Day was shared by Todd Sohn (@Todd_Sohn). The Russell 2000 is outperforming by a decent margin this week after hitting 22-year lows on a relative basis last week ($IWM/$SPY). The Russell 2000 has fumbled several attempts to stage a meaningful rebound this year. Even for the Bulls, it's hard to believe this latest attempt will be any different. However, Todd points out that this time could be different for Small Caps, as momentum has become a tailwind again. The Russell 2000's rolling 12-month return has turned positive this month after spending 17 consecutive months in negative territory. This was the second-longest streak of negative momentum over the past four decades. Looking at the ten prior streaks that came close, the Russell 2000 was higher each time by an average of +26.28%.