The Russell 2000 Index Is Building A Bullish Base

There is no question that 2021 has been a challenging year. There are many stocks and sectors that have rallied to new highs, but there are plenty of industry groups that have slumped and broken down. It is safe to say that this year has been a stock pickers market. 

One major stock index that has lagged this year is the Russell 2000 Index (IWM). This index represents small capitalization stocks in the United States. This index has been on a roller coaster ride in 2021. The iShares Russell 2000 ETF (IWM) has traded as high as  $234.53 in March 2021 and as low as $209.05 in July 2021. This important ETF has basically been trading in a long sideways trading range all year long. 

Today, the iShares Russell 2000 ETF (IWM) is trading higher by 1.80% to $227.01 a share. The stock is now trading above its important 200 and 50-day moving averages. This puts it in a strong technical position on the daily chart. There certainly seems to be a change in character for the Russell 2000 Index now as the weekly chart bullish base has matured. Should the IWM breakout to news highs this could have some upside potential into the $245.00 area. At this time, this is just a bullish base, but it’s worth keeping on the radar. 

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