The Small Caps are showing strength $IWM – July 11, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take another look at IWM ( NYSEARCA: IWM ), which is the iShares Russell 2000.
This is a chart that we actually brought to your attention on Tuesday, and it played out exactly as we had hoped. I mentioned on Tuesday, watching IWM ( NYSEARCA: IWM ) and interest rate-sensitive stocks for a potential break out if CPI came in below expectations. It did, and we got that breakout that we were looking for, and it came on higher than average volume
I would definitely keep an eye on IWM ( NYSEARCA: IWM ) for some follow-through to the upside as this gapped and went and held the gap to the upside. And though it is just under a pretty clear resistance zone, right there, just around that 211.00, 212.00 regions, when we saw this gap up. We also saw SPY ( NYSEARCA: SPY ) and the QQQs ( NASDAQ: QQQ ) sell off a little bit.
So not only are the IWM ( NYSEARCA: IWM ) stocks working, but it looks like we’re actually getting a bit of a sector rotation. So if this rotation continues I think you are going to want to live in and around this chart or even the leveraged TNA ( NYSEARCA: TNA ) chart for the next little bit as a bit of a catch-up trade.
Because as we know, the market rally has been very narrow. There’s been a handful of stocks, the big tech leaders, they’ve been really leading the rally. And so I definitely think it’s time for them to rest and for some of these small-cap stocks to play catch-up. So keep an eye on IWM ( NYSEARCA: IWM ) for some follow-through.
I would definitely recommend having an alert at around that 212.00 level on IWM ( NYSEARCA: IWM ). And if you took this idea today, I would consider a stop at least, at the very least, at the low today right around that 206.90 level.
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