“TradingAnalysis.com founder Todd Gordon doesn’t believe the index is firmly in an uptrend. After examining a chart of the IWM, an ETF that tracks the index, he doesn’t think it’s about to break out to the upside. He is, however, watching one key level as a potential strength indicator,” reports CNBC.
The $41.51 billion IWM allocates over 18% of its weight to financial services stocks. Healthcare and industrial names combine for over 30% of the fund’s weight.
Data suggest investors remain leery of small caps. This year, IWM has seen $2.83 billion in outflows, a total surpassed by just one other ETF.
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