Chart of the Day - Tuesday, October 22, 2024

🏆  Today's Chart of the Day was shared by @TheDonInvesting.
 

• Donovan points out that the Russell 2000 has formed a potential Failed Breakout, putting Small Caps at risk of further downside in the near term. 
   
• It broke out to multi-year highs on Wednesday after clearing resistance from the July peak, around 2,260. However, it has fallen every day since then, closing firmly below resistance today.
   
• Price has been rejected at this level several times over the past three months, although each rejection has been followed by a higher low. 
   

Takeaway: The Russell 2000 has formed a potential Failed Breakout. The index is vulnerable to further downside if it's below its July peak.