Russell 2000 Could Extend Momentum as Technicals Signal Potential Upside

Published 13/08/2025, 07:42
Updated 13/08/2025, 07:44

When I left for holidays, the Russell 2000 (IWM) made a breakout, only to dip below breakout support. But upon return, the Russell 2000 ($IWM) has gone on to make a new breakout on higher volume accumulation.

However, technicals are still mixed, although the MACD trigger and On-Balance-Volume are close to fresh buy triggers.

IWM-Daily Chart

The S&P 500 posted a new breakout after an earlier trend break. In doing so, the process of posting small gains returns. The 20-day MA has played as support and this should continue for now. Technically, only the MACD trigger is holding to a ’sell’ trigger.

SPX-Daily Chart

It was a similiar story for the Nasdaq ($COMPQ) as it posts a new breakout, except it did so on net bullish technicals - the only index to do so.Nasdaq COMPQ-Daily Chart

While indices have recovered well from Trump’s Tariff Tantrum, none have reached a point where they could be considered extended (relative to their 200-day MAs). And given that, at least until Labor day, the outlook for all markets remains positive.

Only Bitcoin ($BTC/USD) has yet to follow the index lead. However, it’s well primed to post a breakout with technicals improving.

BTC/USD-Daily Chart

For now, long trades remain favored.

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