conflicting signals here

48 0 3
While DIA             is making new highs, I thought I'd look at IWM             to see how the small cap stocks are faring.

Standard TA shows a potential bull flag well underway here. Meanwhile a possible EW count that fits with that bull scenario shows a subwave 4 of 3.

The main problems I see with the bull thesis, as far as IWM             is concerned, are two-fold:
1. The 2 main waves up are roughly equivalent, which points more toward an ABC corrective formation, rather than an impulse wave.
2. As a general guideline, a 3rd wave (and especially a 3rd of an extended 3rd wave) should carry the highest momentum. Here momentum is roughly equivalent.

So is it possible IWM             is playing catch-up here? Certainly. I wish there were more evidence to convince me one way or the other. For now, I'm forced to watch to see what the next move is. A convincing break lower will push me more toward the ABC corrective scenario(116 will confirm it), while a new high will push me toward the wave count pictured here.

We could be looking at 0 new highs, 1 new high, or 2 new highs (pictured here), depending on the pattern being a completed C, a 3 of C, or a 3 of 5. With that much uncertainty, it's better to give the market the opportunity to show its hand.
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