IWM — All updates

One on the IWM. All right. Now, this is the Russell 2000 index. We used to cover this every day. Sometimes it's just not as as robustly moving. However, in this scenario with high yields, about 64% of the stocks contained in this 2000 stock index are not profitable and rely heavily upon borrowing money to pay out and and fund their ventures to keep their business doors open.

So, higher interest rates are going to put pressure on the majority of stocks here in the IWM.

And then the IWM, bearish trend, break of structure to the downside. Don't have the lower lower lows and lower highs yet.

I've got I've got bearish indications across the board. SPY Q's IWM, all lower highs, lower lows, all breaks of structure to the downside, all in a bare trend.

The reason for this depends on the charts that I will show you while looking at FEZ, XRT and the Russell indicator.

Let's look at Russell's index here; that tells a completely different story. The Russell index is much weaker. Hmm, some people are asking me why the Russell index is so weak, and why it is declining so sharply during this period.

The Russell index is moving downwards due to the interest rate situation. If 10-year Treasury yields reach 5%, the earnings of more than a third of Russell Index companies with variable-interest debt will be hurt, and a significant portion of Russell stocks are already losing money.

And so, if you look at the IWM, the small caps, you're going to see a lot of weakness.

And one other index I'm showing you is this small caps IWM, uh the Russell 2000. And that is showing a lot of weakness.

Let's also check the IWM here real quick and see how that's doing today. So, IWM, this is interesting. IWM forming a double bottom here around 2926065. Be very interesting to see if IWM can reverse this as well.

IWM pulled and I see a lot of the smaller names pulling too. That had me wondering if it was something rate uh wise.

Even the IWM index rose today.

Okay, as we switch over to the small cap area, I do want to start out with the IWM. You can see what's taken place. I mean, this has been the best performer of the indexes this year and we've got relative strength to kind of prove that as this has made higher highs and higher lows really since the middle of last year.

It started to turn up and it's been holding the moving average. We want to see that to continue. We want to make sure that continues.