Chart of the Day - Friday, November 22, 2024

🏆 Today's Chart of the Day was shared by Michael Kahn (@mnkahn).
 

• After giving back two-thirds of its post-election rally last week, the Russell 2000 ($IWM) rebounded +4.5% this week, gaining twice as much as its Large-Cap peers. 
   
• $IWM fell into its post-election gap last Thursday and continued lower the next day. However, former resistance became support this week, marking a successful retest. 
   
• It never fully closed its post-election gap, showing resilience. $IWM will have a second shot at all-time highs next week. It's only -1.6% below its 2021 peak on a closing basis, and 'tis the season for Small Caps!
   

The Takeaway: After successfully retesting its post-election breakout, the Russell 2000 ($IWM) could see its first all-time high in three years next week as we enter a period of seasonal outperformance for Small Caps.