Conclusion, Investment Implications, Strategy
The iShares Russell 2000 ETF (IWM) is in the midst of a December 2023 major uptrend and is currently breaking out higher from six weeks of sideways investor indecision. This breakout targets an additional 9% rise to 245.00 that will remain valid above the 216.50 area. Meanwhile, the total net assets invested in IWM are in a Sep 13th trend of monthly expansion while IWM is also in a Sep 13th trend of Strategic relative outperformance versus the S&P 500 (SPY). Together, these factors establish favorable conditions for more outright strength and relative outperformance from small cap stocks.
IWM Trending Higher Amid Expanding Assets & Relative Outperformance Versus Stocks
The upper panel of Chart 1 below shows that the iShares Russell 2000 ETF (IWM) is in the midst of a major uptrend as defined by its 200-day moving average, one which was successfully tested and held on Aug 5th and Sep 11th. This uptrend originated in December 2023. The middle panel shows that the total net assets invested in IWM (AUM) are in the midst of a Sep 13th trend of monthly expansion. Expanding assets indicate bullish conviction in higher prices. The lower panel shows that IWM is also in the midst of a Sep 13th trend of Strategic (quarterly) relative outperformance versus the benchmark S&P 500 (SPY).
As long as these three conditions remain true, IWM is likely to continue moving higher in the weeks ahead.
Chart 1
Current Sector & Industry Group Ideas
Table 1 below is also accessible via the Asbury ETF Trade Ideas rectangle at the top of the Research Center.
Table 1
Click the table to make it larger