Chart of the Day - Thursday, November 2, 2023

Today's Chart of the Day was shared by Grayson Roze (@GraysonRoze). The Russell 2000 ($IWM) made a new bear market low last week after breaking crucial support. However, $IWM is rocketing higher this week and repairing broken support. Grayson points out that today was the second-best day of the year for Small-Caps, with $IWM gaining +2.67%. The next objective for the bulls will be reclaiming the year-to-date lows, around $170, as this would further confirm a failed breakdown. As we know, failed breakdowns often lead to sharp rallies. Breadth data would likely improve dramatically if Small-Caps continue to rebound. Remember, Small-Caps have historically outperformed in the final months of the year.