The iShares Russell 2000 ETF (IWM) has shown resilience, gaining 0.7% on December 26, 2024, amid a decline in 10-year Treasury yields. Analysts noted that small caps, particularly IWM, are experiencing a positive trend despite bearish sentiment in the market. Some traders are optimistic about potential upside, with calls for IWM at $222 and expectations of aggressive movement once it breaks out of a bull flag pattern. The ETF has been highlighted as one of the strongest indices currently, alongside the SPDR S&P Biotech ETF (XBI). The recent performance is attributed to a rotation into growth sectors, including quantum, space, drones, small-cap software, and select AI stocks.