Chart of the Day - Tuesday, October 17, 2023

Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). The Russell 2000 ($IWM) gained over +1% today, while the other indices were flat or lower. $IWM closed at a five-month low on Friday, but it's rebounding off $170 again. Mike points out that while price made a lower low on Friday, RSI made a higher low, forming a bullish momentum divergence. $IWM also registered a Death Cross on Friday, with its 50-day moving average (blue) slipping beneath the 200-day (red). Despite the spooky name, Death Crosses have historically been bullish. Seasonality might be the cherry on top here, as Small-Caps historically begin to outperform Large-Caps in late-October. If Small-Caps finally join the party, it will further confirm the new bull market.