(PRO Views is exclusive to PRO subscribers and gives you insight into the day’s news straight from real investing pros. See the full discussion above.) Traders will be paying special attention to small-cap stocks this week after last week’s pullback sent the Russell 2000 into correction territory, according to Jay Woods of NYSE Insider. The small-cap index fell 10% from its all-time high last week, falling into correction territory. That’s at a critical tipping point, Woods said. Friday’s benchmark ended at 2,438.45. The Shares Russell 2000 ETF (IWM) soared more than 2.7% on Monday, leading a broader market rally after President Donald Trump said the United States and Iran held “productive” talks over the weekend. President Trump also told CNBC that he is “very eager to get a deal” with Iran. “We should see a big rebound in the stock as we open trading on Monday. It was a big breakout, so let’s see if it can sustain this level,” Woods said. “Let’s see if we can sustain above $242,” Woods said at IWM. “We expect the relief rally to continue into Wednesday and Thursday. As the weekend approaches, traders need to pause, take stock, and then take short-term profits from this relief rally.” Woods, chief market strategist at Freedom Capital Markets, is also looking at: Can the S&P 500 recover above its 200-day moving average, or “will old support become resistance?” Following Monday’s surge, the S&P 500 index traded around 6,620, a few points below the 200-day level of 6,625.09. Woods is also following the recovery of the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) above the $117-$118 level. Will Nvidia be able to bounce back to the $185-$190 level after closing near its 200-day moving average on Friday? (This weekly Monday video is exclusive to CNBC PRO subscribers.)
