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Tuesday, May 23, 2023 12:09:47 PM
Small Caps Russell 2000 (IWM) Are Ready To Launch!
By: Tom Bowley | May 23, 2023
There are many who have given up on the small cap community, but I'm not one of them. The long-term 15-year chart remains in a solid uptrend. Yes, the group has been underperforming the S&P 500 for quite awhile, but that's been the standard since this bull market began. Admittedly, its relative strength has been poor. Its absolute performance, however, remains in an uptrend and we could be on the verge of a major breakout today. Check out this daily chart:
While the IWM has been floundering, check out that bottom panel. Money has been steadily rotating from small cap value ($DJUSVS) to small cap growth ($DJUSGS). I've been discussing this with our EarningsBeats.com members for the last several weeks. This bottoming formation (blue circles), though a bit longer in duration, is quite similar to previous bottoms. The MAJOR difference this time is the shift to small cap growth, which I believe is a signal that this breakout won't simply be short-term, and the simultaneous bullish PPO crossover (black circle). I'm looking for a small cap explosion on this breakout, IF it confirms into today's close! I'm betting it will.
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By: Tom Bowley | May 23, 2023
There are many who have given up on the small cap community, but I'm not one of them. The long-term 15-year chart remains in a solid uptrend. Yes, the group has been underperforming the S&P 500 for quite awhile, but that's been the standard since this bull market began. Admittedly, its relative strength has been poor. Its absolute performance, however, remains in an uptrend and we could be on the verge of a major breakout today. Check out this daily chart:
While the IWM has been floundering, check out that bottom panel. Money has been steadily rotating from small cap value ($DJUSVS) to small cap growth ($DJUSGS). I've been discussing this with our EarningsBeats.com members for the last several weeks. This bottoming formation (blue circles), though a bit longer in duration, is quite similar to previous bottoms. The MAJOR difference this time is the shift to small cap growth, which I believe is a signal that this breakout won't simply be short-term, and the simultaneous bullish PPO crossover (black circle). I'm looking for a small cap explosion on this breakout, IF it confirms into today's close! I'm betting it will.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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