(PRO Views are exclusive to PRO subscribers, giving them insight on the news of the day direct from a real investing pro. See the full discussion above.) Traders will be paying special attention to small caps this week, after the Russell 2000 fell into correction territory during last week's pullback, according to New York Stock Exchange insider Jay Woods. The small-cap index last week tipped into correction territory, 10% off of its peak. That put it at a key inflection point, Woods said. The benchmark closed at 2,438.45 on Friday. The Shares Russell 2000 ETF (IWM) surged more than 2.7% on Monday, leading a broad market rally after President Donald Trump said the U.S. and Iran had "productive" talks over the weekend. Trump also told CNBC he is "very intent on making a deal" with Iran. "As we kick off Monday trading, it should get a nice bounce. Let's see we can hold those levels, because it was a major breakout," Woods said. "Let's see if it can stay above $242" on the IWM, Woods said. "I expect a relief rally to continue into Wednesday, Thursday, and as we get closer to the weekend traders should pause to see what the situation is, and then take some near-term profits on this relief rally." Woods, chief market strategist at Freedom Capital Markets, is also watching the following: Whether the S & P 500 can recover above its 200-day moving average or "if that old support becomes resistance." With Monday's surge, the S & P 500 traded around 6,620, a few points below the 200-day level of 6,625.09. Woods is also following the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) as it rallies back above the $117-$118 level. Whether Nvidia can pop back to the $185 to $190 level after closing around its 200-day moving average on Friday. (This weekly Monday video is exclusively for CNBC PRO subscribers.)
