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The Russell 2000’s Secret Identity

Published 11/18/2020, 12:36 AM
Updated 07/09/2023, 06:31 AM
NDX
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US500
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DJI
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US2000
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DIA
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SPY
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QQQ
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IBB
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TSLA
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IWM
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KRE
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XRT
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IYT
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SMH
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The S&P 500, NASDAQ 100, and Dow all closed under their recent highs, while Grandad Russell 2000 was able to close over 178.10 making new all time highs.

It’s no easy feat for the small caps to outperform the major indices, especially with the recent news of Tesla (NASDAQ:TSLA) entering the SPY.

Furthermore, IWM's superior strength paired with his ability to scale the charts to new highs leads me to believe that Grandad IWM has revealed himself to be... Spiderman!

Spiderman is known to have powers such as sticking to walls, increased agility, and wrists that shoot sticky webs.

He also has a unique spider-sense ability which alerts him to incoming danger.

Indices Daily Charts

Above is a chart of the four indices with IWM on the top right.

The QQQ’s have been stuck under the 303.50 high from September, which indicates a rotation out of the tech heavy index.

DIA and the SPY show a close resemblance to each other as they both will need a move over Monday’s high to be able to compete with Granddad Spiderman.

Spiderman’s increased move upwards could have something to do with the Harley Davidson motorcycle he's riding, though he should still be careful now that the SPY has a shiny new Tesla in its possession.

As this week continues, now that Gramps shows to be quite the superhero, we will watch to see if his wife, Granny Retail aka Mary Jane, can also make new highs. She is very close.

That power couple along with their grandson Tran, IYT, make quite a formidable protection for the bulls.

S&P 500 (SPY) 364.38 high to clear.

Russell 2000 (IWM) New all time high.

Dow (DIA) Needs to close over 300.00

Nasdaq (QQQ) Watching to break election range at 295.39.

(KRE) (Regional Banks) Holding over 48.83 last week's high.

(SMH) (Semiconductors) Needs to clear 202.89 with support at 190.

(IYT) (Transportation) New All time highs.

(IBB) (Biotechnology) 136.40 support the 50-DMA and 143.36 Resistance.

(XRT) (Retail) 56.56 high to clear.

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