The Index Investors Should Buy Now

Every day the S&P and Nasdaq have been hitting new all-time highs. However, there is one index that has not made a new all-time high in over a year. That index is the Russell 2000, also known as the small cap index. Based on the technical chart, that could be about to change. In fact, the Russell likely has huge upside potential, well over 10% into year end. There is an amazing bullish consolidation pattern on the Russell 2000 (IWM) that started in January 2019. The pattern is borderline breakout. The breakout occurs when price pops above 160.00 on a weekly closing basis. Once this happens, there is upside to the $173.00 double top, all-time high from 2018.

Considering the S&P and the Nasdaq are so extended, it is wise to pare back positions there and increase exposure to the Russell 2000. In fact, it is possible the is a switch in performance, where the S&P and Nasdaq start chopping sideways, even pulling back a little in the coming weeks while the Russell 2000 plays catch up. See chart:

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.