Chart of the Day: Russell 2000 Long-Term Trend

The following note is courtesy of Chart of the Day. The original can be found here.

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The following chart illustrates the long-term trend of the Russell 2000 since 1978.

The chart illustrates that the Russell 2000 has been trading within the confines of a long-term trend channel since the financial crisis.

More recently, small-cap stocks have surged on the hope that the newly discovered vaccines will soon allow many relatively small companies to reopen and / or expand operations.

It is worth noting, however, that the recent surge has brought the Russell 2000 to a point where it is testing resistance of its long-term trend channel.