IWM shows strong relative performance but lacks short-term momentum confirmation; a daily DI breakout is needed to sustain the uptrend.

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.

I think if we're going to continue to see these small cap stocks outperform, I think this is going to be a pretty important little anecdote to watch, all right? If if we break this, uh this indicator is going to give us the sign that maybe there's some issues developing here.

Um but as far as individual stocks go, there's a lot of attractive patterns. I don't think we're going to see this breakdown, but it is something we're going to want to watch over the over the course of the next few months, all right?

Um now, so far the momentum really has not kicked into gear, but that's also been true as well in the S&P. So, you know, we've got the longer-term momentum kicking into gear on the monthly, but it hasn't taken place on the weekly or the daily.

First off, we want to see a DI breakout on the daily chart. We can see these lines are all sitting here. If we make another move to the upside, we're going to want to see green DI, the green line here, uh plus DI break out above all these highs and sort of kick things off.

Um I think if that's the case, we're going to continue to see this uh relative strength line um continue to make higher highs and higher lows.