U.S. stock futures traded higher this morning following an extremely turbulent week on Wall Street — and more in Tuesday's stock market recap.
If you look at the IWM, an ETF that tracks the performance of U.S. small-cap stocks, you’ll notice it hasn’t made as big of a lower low as other indexes like the S&P 500.
This is significant because the Russell 2000 tends to lead the broader market on the way up and down…
Volatility via the VIX, or fear gauge, didn't make a higher high last week as the S&P 500 and Dow both made new lows. So if the IWM doesn’t break its previous low and goes up to the $190 level, there’s a good chance that the worst is behind us.
The put/call ratio is also still above 1, which tells us that more traders are buying puts than calls. This means stocks are oversold and overdue for a strong rally.
In this morning’s stock market recap video, I’ll show you why I believe last week might have been a major market shakeout… which sector is starting to lead… why small-cap stocks are leading… whether volatility has topped out… what to expect from the Federal Reserve this week… the best stock to own right now… and where stocks are headed in the near term.
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