The Russell 2000 Index breakout over a long term consolidation
The Russell 2000 Index ETF( IWM) has broken out and followed through, over a long term consolidation. The word ‘consolidation’ is code for underperformance. Underperformance relative to other indexes.
On a Relative Strength basis, the ETF is well below the 200 day relative strength moving average vs. The S&P 500 Index (SPX). The 21 and 50 day relative strength moving averages are above the S&P. So this may indicate a potential trend that may outperform The S&P long term. Look to see this relationship continue, and then begin to outperform on the 200 day.
The 21 day 50 day relative strength stock chart below:
| Russell 2000 Index ETF( IWM) |
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