Chart of the Day - Tuesday, July 16, 2024

🏆 Today's Chart of the Day was shared by Bespoke (@bespokeinvest).

• The Russell 2000 gained another +3.5% today after gapping higher for the fifth consecutive day. This Small Cap index has added a whopping +11.5% since last Tuesday, marking the best five-day rally since April 2020.

• Bespoke points out that the Russell is 4.4 standard deviations above its 50-day moving average. None of the major indices have done this before (Dow, S&P, Nasdaq).

• The Russell is due for pause or pullback in the coming days, but this move was very constructive. The index could even reach all-time highs by year-end. It would need to gain +8% over the next five months, but it's gained far more in just the past five days.

The Takeaway: The Russell 2000 is significantly extended after a historic five-day run, but all-time highs are suddenly within reach by year-end.