Alex Borzak
⬤ The Russell 2000 is on track for something it's never done before—a monthly close above 2,660, which would be the highest in its history. After spending years bouncing around between 1,700 and 2,300, the index has broken out in a big way. The current monthly candle shows a gain of over 7%, putting small-caps in uncharted territory on a closing basis.
⬤ The monthly chart tells a clear story. Following the 2021 peak, the index went sideways for a long time. But the recent rally blew through old resistance levels, and the index is now stringing together higher highs and higher lows. The steep climb into 2025 and early 2026 looks very different from the choppy action before it, and price is holding strong near monthly highs as the period wraps up.
⬤ This matters because the Russell 2000 is often seen as a barometer for risk appetite. When small-caps rally like this, it usually means investors are feeling confident about growth and willing to bet on smaller, domestically focused companies. A record monthly close would be a major technical milestone and could shift how traders view the durability of this trend. The big question now is whether momentum can keep going or if we'll see some consolidation after such a sharp run.
Alex Borzak
