Saturday, July 8, 2023

Russell 2000 Index (IWM) Technical Analysis

When you zoom out the chart lots of things become apparent. I drew up the major trading ranges the Russell 2000 IWM is in. These levels go back to last year. I see a high likelyhood of more short-term downside and level test from here. I drew up trend support too with the blue line. Trend support test is likely to be coming. So, I wouldn't be surprised to see a these levels touched. IWM once again is back in a trading range. There are a lot of small banks in this index and the Regional Bank ETF KRE has been weighing it down.

You can see KRE is in a trading range also. This isn't particularly bullish for the overall stock market going forward. The market has shown it can perform absent financials but the economy is to large extent small business.

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