Russell is dancing on the clif"The Russell 2000 index (IWM) is currently displaying a weak and bearish pattern.
After a significant downward move, IWM formed a substantial symmetrical triangle, which is typically considered a bearish pattern, often referred to as a bearish pennant.
Around mid-July, the index broke out to the upside from this symmetrical triangle, marked with a circle. At that point, it seemed that the Russell was poised for an upward trend. However, a lesser-known pattern known as the 'death hook' emerged. The death hook, or fake breakout, is a potent trend reversal pattern that tends to occur during situations of fake breakouts or breakdowns. It appears that this pattern has manifested in the case of the Russell.
This suggests that the breakout was deceptive, enticing smaller market participants to enter the market before reversing course and moving sharply downward. While a minor bounce may occur, it's expected to be short-lived.
In all likelihood, the price will eventually break down from this bearish pattern and continue its descent. The only potential scenario for the bulls to regain control is if they intervene decisively, triggering another breakout to the upside accompanied by strong trading volume."
