Russell 2000 (IWM) Technical Analysis: Support Zone Tagged

Following a steep 30% drop from its all-time high in November 2024, the iShares Russell 2000 ETF (IWM) recently staged a bounce but still appears susceptible to further downside.

From a technical standpoint, a critical support zone lies between $173.50 and $162.50. Holding this level is key; continued support could fuel a near-term recovery targeting the $200 mark. Conversely, a failure to hold this zone would open the door to a potential slide towards $130.

However, broader economic factors—specifically a weakening economy, higher yields, and trade war concerns—are creating significant headwinds for the small-cap stocks within the Russell 2000. Given this challenging backdrop, the current technical outlook suggests treating rallies into resistance as potential opportunities to sell or short, pending stronger confirmation of a market bottom.