Detailed Analysis of the Russell 2000 (IWM)
Close Price: $246.16 (-1.87) as of December 31, 2025
Short Term Outlook
The Russell 2000 ETF (IWM) has recently broken a support level, indicating a negative signal for short-term trading. The current trading range is between support at $242 and resistance at $250. A definitive break through either of these levels will likely dictate the new direction of the ETF.
Recent volatility has been noted, with a 1-day volatility of 1.04% and a 5-day volatility of 3.43%. This suggests that traders should be cautious in the short term as the market may experience fluctuations.
Key Short Term Metrics
| Period | Volatility | Liquidity | Change (%) |
|---|---|---|---|
| 1 day | 1.04% | 8,702.24 | -0.75% |
| 5 days | 3.43% | 5,586.40 | -2.35% |
| 22 days | 8.91% | 8,814.25 | -1.04% |
| 66 days | 17.23% | 9,724.37 | +2.00% |
Medium Term Outlook
In the medium term, the Russell 2000 ETF is observed to be in a rising trend channel, indicating increasing optimism among investors. This trend suggests that prices have generally been rising over time, and there is a potential for continued growth.
However, the recent break of the support level in the short term could pose challenges. Investors should monitor the ETF closely for any signs of recovery or further decline.
Medium Term Analysis
The ETF's price action indicates a narrow channel between support and resistance. A breakout above $250 would be a strong buy signal, while a drop below $242 would suggest a sell signal. The overall trend remains positive, but caution is advised given the recent short-term volatility.
Recommendation (1 to 6 months)
Investors are advised to closely monitor the support and resistance levels. A break above resistance could present a buying opportunity, while a break below support may warrant a reevaluation of positions.
Conclusion
The Russell 2000 ETF presents a mixed outlook in the short term due to recent volatility and a broken support level. However, the medium-term trend remains positive, suggesting potential for growth if the ETF can maintain its position above key support levels. Investors should remain vigilant and ready to act based on market movements.