IWM set to take a leg down. IWM (russell 2k ETF) has been stuck in a ranging rectangle consolidation pattern for like a year. Everyone can see it, it's definitely no secret. This is why I think the last bull spike above resistance failed and was sold off; it trapped a lot of people who assumed it was an upward breakout.
Anyhow, this simple mockup just adds more bad juju, as you can see it's formed a descending triangle pattern in addition to the 200SMA now being resistance. Both of these are very bearish. I am shorting IWM simply too many factors against it....with these two just dumping fuel onto the fire. We might see a bounce at support, yes, but with each bounce lately has came less and less volume. Im interpreting this as the bulls losing confidence, while at the same time the declining trend line that makes the "descending" part of the triangle clearly shows the bears are jumping in earlier and earlier. I think it's just a matter of time now before we formally break the support of the bottom of not only the triangle, but the rectangle bottom support line just below it.
It was a good ride!
