Chart of the Day - Friday, November 8, 2024

🏆 Today's Chart of the Day was shared by Ian McMillan (@the_chart_life).  
 

• It was a bullish election week, with all four major averages advancing and closing near their respective highs. The Russell 2000 ($IWM) gained nearly twice as much as the others, rising +8.7%.
   
• Ian points out that this was the best week for $IWM since April 2020. It also achieved its third-highest weekly close. $IWM is testing resistance from the 2021 peak, closing less than 2% below all-time highs. 
   
• Post-election rallies have become a habit for the Russell. After the past three presidential elections (2012, 2016, 2020), $IWM broke out and rallied for several months. 
      

The Takeaway: Small Caps have potentially kicked off another post-election rally, surging +8.7% this week. $IWM is testing all-time highs and trying to emerge from a three-year base as we enter the most bullish months for Small Caps.