IWM: Week of July 11Same setup here as SPY, but IWM is slightly more true to its descending channel.
SPY has overhead resistance at 393, IWM's overhead resistance channel is at roughly 180.
If SPY breaks over 393, its likely IWM will probably follow.
Predicted trading range for this week is in the green box: 165 - 183.
This has seen slight bullish divergence from last week's range of 160 - 177.
IWM seems to be forming a short term wedge been June 17 and July 8th.
IWM is extremely playable within this channel and tends to maintain its mathematical range better than SPY. So the odds are that it will remain within this trading range next week, absent some type of catalyst that drives it parabolic to the upside or downside (which in this case could technically be CPI).
I am neither short nor long biased here, just playing the range.
Trade safe!
Let me know your questions/comments below!
