IWM breaking down?A dash for trash has been observed!
Many participants are tryging to buy to and squeeze companies that have been beaten down and fundamentally weak.
RWM
Short the Russell2000? RWM The RWM looks very bearish for the Russell 2000
Using the Gann Fan, moving averages and patterns like those mentioned in Stan Weinstein's Secrets of Profiting in Bull and Bear Markets I feel the market is in for a downturn
Houston- we have a problem.... iwm vs spyIWM has been the spy's faithful partner up chart since 2009. This run is different. I think we may be destined for failure.. until iwm can muster the strength to breaks its trend.
Suppose there's 2 possibilities here. either spy's gonna retreat, or iwm needs to make up some ground.. has a large distance to make a new high. Given circumstances i think retreat makes most sense.
Caution is warranted given conditions and charts history....
GOOD LUCK THIS WEEK!
xlf in a popular retreat zone. may be good hedge, or shortHeres some interesting spots on chart. xlf been lagging. similar to iwm.. which looked to be backing out of similar resistance zones.
May pickup some puts to add to my rally for nothing hedge.. Keep waiting to hear why we're back up here. fed rate that never changed? trump deals that never get made? earnings revisions everywhere.. so much debt.. etc
Seems this or iwm reacts stronger to downside, vs spy or vti.. Some may consider this a warning that there is downside risk mounting.. others on the trump train just see more money to harvest. Not sure where i stand. I guess id say im not convinced. But eager to see what happens.
Small caps lead rallies and sell-offs, this is no different.Skilled traders watch all the charts to assist them in identifying characteristics that can assist them in understanding price moves, key support/resistance levels, and price patterns. This IWM chart should be on everyone’s radar at the moment. Where the IWM finds support, so will the other US stock market indexes.
The IWM setup indicates we may only see a 5~7% downside price swing before support is found. We’ll have to watch how this plays out over the next few weeks/months to determine if the $144.25 level is true support or if the lower $137.00 level will become support. Either way, the downside price swing appears poised to unfold over the next few days/weeks – so be prepared.
I authored a research article about this pattern setup on February 17, 2019. You can read it here.
Small Cap Bear TrapThe Russell 2000 ETF continues to deliver critical technical and longer-term price patterns for skilled technicians. Combining the IWM chart with the Transportation Index, Oil, Gold, and others provide a very clear picture of what to expect in the immediate future.
Recently, we posted a research article about the Head-n-Shoulders pattern setting up in the $INDU. Again, the IWM chart is also showing a very clear Head-n-Shoulders pattern with critical resistance near $159.50 and support near $144.25. Our researchers, at Technical Traders Ltd., believe this right Shoulder will prompt a downside market move towards support near $144.25 before a downward sloping wedge pattern sets up. This first downward price leg will setup and congesting wedge formation that will, eventually, break to the upside and drive market prices higher.
We authored a research article about this pattern setup on February 17, 2019. You can read it here.
Skilled traders watch all the charts to assist them in identifying characteristics that can assist them in understanding price moves, key support/resistance levels, and price patterns. This IWM chart should be on everyone’s radar at the moment. Where the IWM finds support, so will the other US stock market indexes.
The IWM setup indicates we may only see a 5~7% downside price swing before support is found. We’ll have to watch how this plays out over the next few weeks/months to determine if the $144.25 level is true support or if the lower $137.00 level will become support. Either way, the downside price swing appears poised to unfold over the next few days/weeks – so be prepared.
Please take a minute to visit www.TheTechnicalTraders.com to learn how we can help you find and execute better trades in 2019. We have already positioned our clients for this move and we believe we can help you stay ahead of these markets.
$IWM ShortMy thesis is based on the following:
1. Multiple lower highs and lower lows
2. Trendline break
Confirmation Timeframes:
Day Chart and Week Chart
AMEX:IWM
Trade:
Short IWM
Long RWM
The other option is to go long RWM
