Chart of the Day - Thursday, December 21, 2023

Today’s Chart of the Day was shared by John Roque of 22V Research (@daChartLife). Small-caps have led the current rally by a notable margin. The Russell 2000 is up more than 20% since the end of October, putting it on track for its best two-month gain since December 2020. It's still facing resistance at 2000, representing the upper bounds of a two-year range. However, John points out that the Russell 2000 could be in the early innings of a triple-digit rally, considering the index is emerging from its second-worst bear market. He notes, "Over the last 25 years, turns off bear market lows have produced outsized gains for this index. There have been six bull markets for the Russell 2000 since the late 1990s, with five of six producing trough-to-peak gains of at least 102%, while the non-triple digit advance gained 83%.