The small-cap segment has been gaining momentum in recent months, jumping on the risk-on sentiment as market participants are increasingly believing the Fed may not raise rates at all this year. The extended low-rate environment has also been a boon for smaller companies that have capitalized on cheap debt in their balance sheets.
“A bullish confirmation of the head and shoulders pattern (i.e. breakout above the neckline) would have broad implications for the stock market. It would likely coincide with a breakout of the S&P 500 Index to new highs (thus confirming the next wave higher of this bull market). On the flip side, a failure at the neckline resistance would likely slow the bullish advance,” according to See It Market.
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Tom Lydon’s cliens own shares of IWM.