Tackle Today: Small Caps go BIG
July 20, 2022
«Looks like a Legit Breakout.»
Traders,
Stocks soared on Tuesday, finally eclipsing resistance and turning the daily trend higher. Small-caps led the way, with the Russell 2000 ETF (IWM) surging 3.5%. IWM scored its second decisive breakout above the 50-day moving average of 2022. The last time we cleared this critical moving average with as much strength (March 17th), prices remained bullish for a few weeks.
Consider the psychology behind a breakout. Bears have traded against $176 resistance in IWM for weeks. With each test, prices were reliably rejected. It’s the type of movement that encourages bears while depressing bulls. Now that resistance has broken, sellers are running for cover, and bulls are stampeding into new territory. Like water through a broken dam, prices are flooding higher. This is the clearest and cleanest bullish signal we’ve had in a long time. Let’s hope it sticks.
Video Of The Day: How the FED uses economic data to adjust policy
Starting with the unemployment report, Matt begins to talk about how the fed uses economic data to adjust policy. Sometimes the Fed cherry-picks what they want to look at…
Chart of the Day: Russell 2000 ETF ($IWM)
IWM completed an ascending triangle bottoming formation with Tuesday’s breakout.
Today’s line up
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The Coaches Show Replay
If you missed last night’s episode with Coach Tyler Craig where he talked about the S.T.E.P. Swing Trading System or would like to watch it again, check it out here.
Halftime Report 12:30 PM EST
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Trading Justice 485: Is this the bottom?
Welcome to Episode #485 of the Trading Justice Podcast where Coaches Mark & Matt break down the market activity over the past week and discuss what to expect from the market this week as they journey through the market skyline including conversations on gold, oil, bitcoin, and the USD.
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