Small and Microcap Levels & Trends Preview

BHT identifies meaningful trends and important supply and demand levels in the financial markets.  An understanding of these dynamics will add Alpha to any investment strategy.  The following are important factors to consider in the Small & Microcap Equity Sectors:

Russell 2000 - The IWMs broke the downtrend that began in late July after finding support around the $134.50 level.  This is the same level that they found support at in May.  Longer-term, there may be support around the $129-130 level because this was the top and an all-time high in June of 2015.

IWM US Equity (iShares Russell 2 2017-08-26 10-32-19.jpg
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Russell 2000 Value - The IWNs broke their recent downtrend after finding support around the $113 level.   This level was also support in March and May.  Longer-term, the $105 level may be an important support level because it was important resistance three times over the past four years before the breakout late last year.

IWN US Equity (iShares Russell 2 2017-08-26 10-43-49.jpg
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Russell 2000 Growth - The IWOs broke their recent downtrend and have been consolidating around the $165 level.  Longer-term, there will probably be support around the $160 level because it was the top and an all-time high in June of 2015.

IWO US Equity (iShares Russell 2 2017-08-26 10-51-35.jpg
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Russell Microcap - The IWCs broke the downtrend that began when they made all-time highs in late July.  They found support around the $84 level which was also support in May.  Longer-term, there will probably be support around the $82 level because it was the low in December and March.

IWC US Equity (iShares Micro-Cap 2017-08-26 11-06-45.jpg
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Russell 2000 Equity Momentum - The Russell 2000 Relative Strength Momentum Indicator is 43.  This is a neutral reading.  It became oversold recently, but it has since rebounded.

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