NEW YORK (TheStreet) -- Professional money managers are always looking for the area of the stock market that will outperform. Will it be large caps or small caps? Value or growth? Right now, the charts point to a year-end run by small-caps.
The iShares Russell 2000 ETF (IWM), chart above, just made a new high for the recent move up, breaking above its early November peak. A three-month tradable base is now in a place that could support a rally back to the June high. The On-Balance-Volume (OBV) line is firming up along with the price action, and the trend following Moving Average Convergence Divergence (MACD) oscillator is bullish and above the zero line. Prices are between the rising 50-day moving average and the flat 200-day MA, but I anticipate a breakout over the 200-day MA soon.
The point-and-figure chart, above, shows all the intraday swings in IWM. The top of the chart and our price target is $128, and a trade or print at $130 would be a "double top" breakout. On the downside, a trade at $106 would be a new low and would be bearish.
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