Chart of the Day - Tuesday, November 5, 2024

🏆 Today's Chart of the Day was shared by Andrew O'Connell (@realpristinecap).
 

• The Russell 2000 ($IWM) had its best day in three weeks today, rising +1.9%. It outperformed in back-to-back sessions ahead of tonight's highly anticipated Presidential election.
   
• $IWM remains -7.4% below its 2021 peak. However, Small Caps have surged after the last few elections, and $IWM is shaping up for something similar this year. 
   
• After breaking down last week, Andrew points out that $IWM reclaimed the lower bounds of a three-month Ascending Triangle pattern today. If $IWM clears the upper bounds at $228, the next and final resistance level will be $243, representing the all-time high from 2021.
   

The Takeaway: The Russell 2000 ($IWM) repaired a broken bullish pattern today, reviving its chances of a post-election rally.