It’s been a dreadful past couple of years for the Russell 2000 and small cap stocks.
Only in 2009 have small caps performed worse over a 100-week period – point (1) on today’s chart.
Above we look at a long-term “weekly” chart to highlight some important technical developments that active investors should keep an eye on right here, right now.
After a rare 25% decline, the small-cap Russell 2000 ETF (IWM) is testing support at (2). We can see that this area was prior resistance (red arrows) so it holds even more significance.
Should this support fail to hold, the measured move suggests much more downside is possible. Yikes!
Seems to me that this is an important moment in time for small-cap stocks (and perhaps the broader stock market). Stay tuned!
This article was first published at See It Markets.com. To see the original post, CLICK HERE.
