Small Caps Remain Above Important Technical Support (IWM)

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April 11, 2018 5:38am NYSE:IWM

Technical analyst Chris Kimble examines the charts of several major U.S. indexes and finds plenty of support to keep stocks afloat.

The chart above looks at performance numbers of several key indices on a Year-To-Date basis and from the highs in January. Both highlight that these indices are soft and mostly choppy so far this year.

The 8-pack below looks numerous stock indices from large to small-

Even though the majority of these indices are down this year and several percent below highs hit in January, the 8-pack above reflects that each index remains above support (February lows) and 200-day moving averages at each (1).

From a short-term perspective, these support points at each (1) are price points where one should not be surprised to see rallies take place.

2-year rising trends remain in play at each (1) and each index is above February lows and rising 200MA lines. It would take a break of these support points to change the 2-year trends.

The big test for each index should come when they rally and test a series of lower highs off the January highs. What each index does at the test of lower highs, could well determine performance for months to come.

The iShares Russell 2000 Index ETF (IWM) fell $0.71 (-0.46%) in premarket trading Wednesday. Year-to-date, IWM has gained 0.60%, versus a -0.64% rise in the benchmark S&P 500 index during the same period.

IWM currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 41 ETFs in the Small Cap Blend ETFs category.

This article is brought to you courtesy of Kimble Charting Solutions.

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