Michele Schneider | May 26, 2021 12:56AM ET
For the 3rd time, the small-cap index Russell 2000 iShares Russell 2000 ETF (NYSE:IWM) has failed to clear its 50-Day moving average. It is the last of the 4 major indices to lag as Monday the NASDAQ 100 Invesco QQQ Trust (NASDAQ:QQQ) cleared and now for a second day, yesterday, held over its 50-DMA.
This confirmed its re-entrance into a bullish phase.
Although the other indices including the S&P 500 SPDR® S&P 500 (NYSE:SPY) and the Dow Jones (DIA) are in bullish phases, this does not take away the importance IWM plays in the bigger picture.
Representing companies between 300 million to 2 billion, the small-cap index is a vital piece of the market and holds a fair amount of weight in the markets’ price action.
Having said that, IWM has yet to break back down to recent lows and could make a 4th attempt to clear through resistance around $222.14.
If the contrary takes place, and we see a move lower, other important sectors to watch include Regional Banking (KRE), Transportation (IYT) Biotech (IBB), and Retail (XRT).
Each sector is starting to look heavy and could take IWM's lead.
However, Thursday the Jobless Claims, GDP, and Durable Goods Orders reports will be released at 8:30 AM ET.
If positive, this could be an uplifting event for the market and might be a catalyst for IWM's break over resistance at $222.
h2 ETF Summary/h2
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