2023-06-07 13:00:06 ET
Wall Street watched the popular small-cap iShares Russell 2000 ETF ( NYSEARCA: IWM ) bump up to a new 3-month high on Wednesday, as the exchange traded fund touched $187.68 earlier in the session.
By midday action, the fund had retraced some of its gains, trading at $186.75 at about noon ET. Still, the ETF remains in the green by 1 .6% . Moreover, IWM, with its $53.12B assets under management, now sits at levels not seen since March 7, 2023.
On a broader scale, IWM has advanced by 7.7% over the course of 2023. This gain has been supported by advances in some of its key holdings.
The gains in the smallcap sector have been led by some standout performances among some higher-profile names. As examples, Super Micro Computer ( SMCI ) has climbed more than 180% in 2023, ShockWave Medical Inc ( SWAV ) has expanded its value by about 50% and Iridium Communications ( IRDM ) has advanced by around 20% .
However, in the wake of this recent upswing in smallcaps, BTIG argues that a pullback might be on the horizon.
“IWM probably has room back to the $186 level, which was the breakdown point from mid-March, and also would mark the downtrend from the Nov. 2021 and Feb. 2023 highs. We would expect at a pullback from that point," BTIG said in an investor note to its clients in a recent note.
See below a daily chart dating back to November of 2021, highlighting some key technical levels for IWM:
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Smallcap-focused iShares Russell 2000 ETF IWM hits 3-month high