Small Caps Near Groundhog Day Top
Tim Knight | Jul 19, 2023 03:18AM ET
Earnings season is in full swing now, with a bunch of banks reporting pre-market today. Many of them were weak, such as Morgan Stanley (NYSE:MS) (below), whose early action was described by ZH as “…slides as sales & trading disappoint.” Well, the “disappointment” was only felt by the bears, as every single bank (for no particular reason at all) rocketed higher at the opening bell and never looked back.
This bank strength is flowing into the iShares Russell 2000 ETF (NYSE:IWM), which is approaching a trendline it hasn’t touched since the Groundhog Day Top. So the question here is whether it will finally break this trendline and give the bulls their 1,395th victory this year or if we can indulge in some science fiction, it will begin to weaken for more than twelve seconds.
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