The Russell 2000 Leads This Stock Market Rally

This week it is crucial for traders to maintain the overall macro firmly in their vision.

We are keeping an eye on the indices, currency movements, the PCE print, and the GDP statistics.

We also closely follow the small caps this week, the Russell 2000 (IWM), and the patriarch of Mish’s contemporary economic clan.

Grandpa has been sending out encouraging technical signs, and IWM could continue advancing in the coming weeks.

Sign up for our FREE newsletter
and receive our best trading ideas and research

iwm russell 2000 etf trading rally breakout buy signal october 26

In the daily chart today, IWM pushed through the critical 50-day moving average.

This index has been a great leading indicator of late, and we see no reason why that trend will not continue.

We know that “Gramps” has some work to prove that the rally over the last two weeks is not just another FOMO-based bear market bounce.

Let’s take a closer look to decipher what might happen next.

The Granddaddy Russell held necessary support in mid-October and was the only index that held its mid-June lows. 

Grandpa has since rallied, leading the indices, followed by DIA at a distant second. 

IWM offers focused exposure to the American small-cap market. 

Small-cap stocks have made a strong recovery over the past month. The SPY ETF is up 3.7% over the last month, while IWM ETF is up 6.9%.

Today, Grandpa took out the 50-day moving average, the six-month calendar range high, and is displaying substantial upward momentum strength in the Real Motion Indicator. 

Grandpa is now closing in on the 187-price tag and the 200-day moving average. 

Of course, the Murphy’s low side of this trade is that IWM does not confirm this move over the 50-DMA or the 200-WMA as the week continues.

Then, with poor earnings from mega cap stocks, it is equally possible, Gramps runs out of steam and reverses to the downside. 

With MarketGauge’s trading platform and Mish’s premium service, you’ll get alerts on today’s fast-moving stocks to beat the market. 

Mish’s Upcoming Seminars

The Money Show, 
October 30 – November 1
Our members get 20% off the registration price!

Join Mish and many wonderful speakers at the Money Show in Orlando beginning October 30th running thru November 1st. Spend Halloween with us! Use either link to join Mish there!

Mish in the Media

CMC Markets 10-26-22
Two US stocks may have bottomed out

Ameritrade 10-26-22Patiently Watching Macro Trends Unfold

Stock Market ETFs Trading Analysis & Summary:

S&P 500 (SPY) 380 support with 400 resistance level to watch

Russell 2000 (IWM) 177 support and 182 resistance

Dow (DIA) 316 support and 322 resistance

Nasdaq (QQQ) 274 now support, 288 resistance  

KRE (Regional Banks) 60 support and 63 resistance level

SMH (Semiconductors) 185 support and 190 resistance

IYT (Transportation) 208 support and 214 resistance 

IBB (Biotechnology) 124 support and 128 first resistance. 

XRT (Retail) 58 support and 64 resistance

Twitter: @marketminute

The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.