(Click on image to enlarge)

This rotation into small caps and retail has been something many analysts have waited for. 

And let’s face it: 

1. IWM my Granddad Russell 2000 of the Economic Modern Family just made a new 2025 high. 
2. The momentum is strong and above the Bollinger Band 
3. The Leadership clearly shows its outperformance over the SPY. 

So, should investors be piling up on small caps? 

Maybe, but always look left.  

(Click on image to enlarge)

This is the weekly chart of IWM. 

1. The peak high was made in November 2021 at 244.46. 
2. Then, in November 2024, IWM made an all-time high at 244.98, just slightly higher than the 2021 peak. 
3. Now, in 2025, IWM remains 4% away from the all-time high. 

That makes the 2021 and 2024 tops still double tops unless that area clears. 

For now, with mom good, it is possible that IWM remains supreme. 

However, as I say, the market is only as strong as its weakest link, 

We must watch semiconductors (after Nvidia earnings) and Transportation IYT, still struggling. 

If chips or transports go from weak link to an anchor, we could see IWM fall. 

Back to the Daily chart, that is when we look at the July 6-month calendar range high as support or around 226.  

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