Group 1: Russell 2000 ETF (IWM) Analysis - The Russell 2000 ETF (IWM) is currently facing a potential triple top pattern, indicating a bearish reversal from an uptrend to a downtrend [1][2] - The support level for IWM is identified around 210-215, with recent price rejections at higher levels [3] - Recent lows for IWM over the last three weeks are 235.42, 236.75, and 237.55, with a concern for a potential breakdown if the price closes below 237.55 [4] Group 2: Retail Sector ETF (XRT) Insights - The Retail Sector ETF (XRT) reached a peak high last week, but overall performance is underwhelming compared to the all-time highs of 2021 at 104 [6] - A potential reversal top is forming for XRT, with a critical level at 86.46; closing below this could signal a larger correction [7][8] - If a correction occurs, a decline to the 80 area is anticipated, with current performance on par with the benchmark [9]

The Fed’s first rate cut of the cycle is here — and as John Rowland, CMT, highlighted during last Friday’s Market on Close livestream, that’s usually bullish fuel for small-cap stocks. The move is already showing up in price action. The Russell 2000 ETF (IWM) notched a fresh high — its first of the year, and the highest close since 2021. More News from Barchart That’s a three-year breakout. www.barchart.com IWM vs. S&P 600: Same Theme, Different Quality Not all small-cap ETFs are built the same. Rus ...

Market Overview - The Russell 2000 (IWM) reached an all-time high of 244.46 in November 2021 and has shown a slight increase to 244.98 in November 2024, with a recent high of 245.14 on September 18 [1][2]. Technical Analysis - A monthly close above 243.50 for IWM is necessary to maintain a bullish bias [2]. - The Russell 2000 is currently outperforming the S&P 500, indicating positive momentum for small-cap stocks [11][12]. - The Real Motion indicator shows strong momentum, with red dots clearing the Bollinger Band, but it needs to remain above the Bollinger Band for continued strength [13]. Economic Indicators - A strong consumer base, supported by good wages and a robust labor market, is essential for sustained growth in US-centric companies [3]. - Retail remains a laggard, with the XRT index being 30% away from its 2021 highs, indicating potential challenges in the retail sector [4]. Market Sentiment - There are no significant bearish indicators currently, suggesting a positive outlook for the market [14].

Core Viewpoint - The semiconductor sector, particularly the Semiconductors Sector ETF (SMH), has shown significant price movements, with potential for both profit-taking and corrections in the near term [5][6]. Semiconductor Sector - The semiconductor companies, including notable names like Nvidia (NVDA) and Broadcom, have recently reached new all-time highs, indicating strong momentum in the sector [2]. - SMH rallied above its January 6-month calendar range in June but faced resistance in July, suggesting a critical point for future price movements [7]. - Current momentum in SMH remains strong but has not reached new all-time highs alongside price, indicating a potential divergence [7]. Russell 2000 ETF - The Russell 2000 ETF (IWM) attempted to clear the July 6-month calendar range but was unsuccessful, mirroring some characteristics of SMH [9]. - IWM's performance in early July showed improvement, but it has not yet cleared significant resistance levels, which could impact future rallies [12]. - A convincing breakout above the 226-227 range for IWM could signal a strong upward trend, contingent on the retail sector (XRT) also rallying [10].