Very Simply, small caps are on fire!Note the small green horizontal line.That is the new July 6-month calendar range high.IWM handled it like a champ!Plus, look at the leadership chart.IWM outperforms the benchmark.Finally, look at the momentum chart or Real Motion.Momentum is flying alongside price.What does this all mean?
-Back in January 2022, IWM traded at 227 while the all-time high was made in June 2021 at 233,64.That makes 227 an interesting point to watch.Furthermore, should IWM get any correction, the July range high gives you a support level at 218-219.Finally, with all cylinders firing, until we see a bearish momentum in divergence, or the price fails the July range support with momentum holding, the gameplan is stay the course.
ETF SummaryS&P 500 (SPY) New all time highs and 5600 pivotalRussell 2000 (IWM) January 2022 IWM ran to 227 before the big collapse-take some profits if longDow (DIA) New all time highsNasdaq (QQQ) 500 pivotal and still working off that nasty bearish bar on the chartRegional banks (KRE) 55 now support with 60 next level to watchSemiconductors (SMH) 260 -280 rangeTransportation (IYT) 67 now supportBiotechnology (IBB) I still like this sector-152 resistanceRetail (XRT) Granny got her groove-now 77.50 supportiShares iBoxx Hi Yd Cor Bond ETF (HYG) Multi-year highsMore By This Author:Let’s Not Forget The Most Relevant Market Basics
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