IWM gives us mixed signals. It gives both bearish and bullish signals, which can be disturbing, but I have a strategy for that too... But first let's analyse the chart.
A symmetrical triangle is forming after a huge seloff. Meanwhile, the weekly S2 pivot point (165.77) and the POC (168.51) are squeezing the price into a tighter range. The tighter it squeezes, the bigger the breakout will be.
At the same time; MACD shows a regular divergence, which is bullish. The RSI was oversold(<30), now it is back above 30 and rising, which is also a bullish sign.
On the other hand, we are still in a downward trend, so a continuation is possible. It supports the fact that today's green candle is low in volume, which means that participation is low.
Whatever the situation, I expect a huge breakout in one direction or another. In my opinion, the "straddle" option strategy is best suited to this situation. I am playing the 18 Nov 22 169 straddle.