Which Symbols to Watch if Russell 2000 (IWM) Clears Key Resistance
Written by Forrest Crist-Ruiz
Monday the market continued its rally from Friday of last week with the S&P 500 (SPY) and Nasdaq 100 (QQQ) clearing all-time highs.
Again, the tech sector and large-cap stocks are leading the market higher.
However, we should not forget about the Russell 2000 small-cap index (IWM).
IWM has currently moved into a choppy area from $217-225 and will need to clear $225 resistance to prove that the small-cap index can catch up.
Looking forward, If IWM can break key resistance, we should keep an eye on its top holdings as they could get an extra boost from the entire index moving up.
One interesting company is Scientific Games Corp (SGMS).
Monday, SGMS closed over its 50-Day moving average at $69.16.
Next, SGMS will need to confirm a bullish phase change with a second daily close over the 50-DMA.
Additionally, SGMS will need to clear resistance at $72.75 and hold in order to advance towards the highs.
Another company to watch is AMC Entertainment (AMC). Although AMC is a meme stock and therefore has a larger amount of volatility, it looks to have settled down and is now holding over its 10-DMA on a more consistent basis.
With that said, if AMC can clear its recent consolidation area over $39 and hold, it could be gearing up for another big move. The last one is Tetra Tech (TTEK). The biggest hurdle for TTEK is major resistance at $142.79-144.77.
Above is a weekly chart showing how TTEK has failed to get through the $144 price area 3 separate times.
However, clearing $144.77 in price, paired with strong volume could make this a large breakout trade as this resistance area has been in place since January of 2021.
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S&P 500 (SPY) New highs.
Russell 2000 (IWM) 225 main resistance.
Dow (DIA) Support level 347. 356.60 high to clear.
Nasdaq (QQQ) 370 new support area.
KRE (Regional Banks) Needs to hold over its 50-DMA at 64.44.
SMH (Semiconductors) 271.79 high to clear.
IYT (Transportation) 248.88 support.
IBB (Biotechnology) 164.27 support.XRT (Retail) Flirting with the 50-DMA at 95.35.