Chart of the Day - Tuesday, October 15, 2024

Patrick Dunuwila
October 15, 2024

Chart of the Day

 

🏆  Today's Chart of the Day was shared by Chris Verrone (@verrone_chris). 
 

  • Small Caps have lagged all year, but the Russell 2000 ($IWM) has set the stage for a year-end rally. It closed slightly positive today, while the other three major indices fell. 
     
  • Over the past three months, the index has coiled into a narrow range as pressure builds for an explosive move in either direction. Yesterday, Chris pointed out that Friday was a 90% up day for the Russell 2000.
     
  • Regional Banks ($KRE) are the largest industry group within the Russell 2000, representing 10% of the index. Chris adds that $KRE and $IWM look ready to run if they can clear $60 and $225, respectively. 
     

Takeaway: The Russell 2000 and its largest industry group, Regional Banks, have set the stage for a year-end rally. Both are knocking on the door for the third time after coiling into a narrow range.

Filed Under: