07Jun3:16 pmEST

A Party is a Party is a Party

It may be just a lull before the FOMC next week, if not GME earnings later this week, but the small caps in the IWM (ETF for the small cap-dominated Russell 2000 Index, on its daily chart, below) is making its case today that a viable, multi-month breakout could be in the works. You can see for yourself how significant the $230 level has been as resistance since February, which makes this latest push above it all the more important, especially as former leaders in the Nasdaq remain in limbo and current leaders in the financial sector now seem a bit exhausted after a tremendous run. 

Of course there are tons of reasons to excuse away the breakout, as usual, be it the spike in USCR today (a holding in the IWM ETF) on the news of a buyout from VMC, or the epic, continued squeeze in AMC (also a holding in the IWM). But a party is still a party, is still a party, provided that $230 now holds as support. 

Should that happen, a small cap albeit more thinly-trade oil play like NINE, on the second daily chart, below, seems like it may be in the sweet spot to prosper as being both a small cap and in the hot energy sector, ripe to catch-up to peers above $2.55. 

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