IWM Volume Trend
Updated
Volume spike very likely soon! Trend has been:VOLUME UP=PRICES DOWN. Watch for initial divergence where IWM could spike before correction. Eyes on that volume! This is not necessarily a good place to go long on IWM but it certainly could make a strong move up before any correction. I am positioned mostly short on market but I've had a small "long" hedge in IWM call options. Small caps have been lagging behind market oddly- I cannot discern if this is a red flag warning to the entire market or small caps are about to catch up. The volume certainly tells a story worth reading and the the 36,000ft view tells me be very careful up here- market pressing upward with major decrease in volume is a recipe for a major PIVOT down.
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weekly chart best demonstrates this growing concern. Prices up, volume down.. Remember that all trends break and when this one breaks- Volume is going to break out of the wedge and.. and as history tells us it's PRICES DOWN Note
spy comparison Note
wow- 2% move up today- sold some calls. I suspected this pop but don't be fooled.. we should move up higher for a while but I see a pending PROBLEMNote
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spy/es- I am now fully expecting a leg down- I think this "breakout" in IWM will be limited for fakeout based on what I'm reading between the lines- Note
sold last calls in iwm- this looks very suspicious! Note
this is dragging on- nothing changed from my previous updates- I don't know how long this can continue but it's developing the way I expected.. may have a longer rolling top Note
line up all the pink- possible similar formation where we could see a top occur but it could drag on for a while before turning Note
looks like a possible turning point.. very soon Note
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