$IWM is breaking out of a four year base.

Each time the Russell 2000 breaks a major monthly multi year resistance level it’s advanced at least 33% each time.

AI and incoming rate cuts are like rocket fuel for small-mid cap companies. Both of these in tandem can accelerate their growth, reduce costs, and unlock productivity gains that were previously out of reach.

Small-mid caps need to do more with less due to financial constraints, AI is the fix for that. They also need easy access to capital, lower rates unlocks that with cheaper borrowing rates.

It feels like the perfect storm as we head into 2026.