Small cap companies are usually the first to feel the pain on the ground. As some put it, they are like the troops in the front lines, the S&P500 like the officers who stay behind the lines, and the DJIA like the Generals who sit way back.
The IWM has been hovering sideways for since March 2014, forming a triple top pattern. In my opinion, now would be a good time to SHORT the IWM ETF, as:
1. Price was rejected off both the up-sloping blue dotted trendline resistance AND the down-sloping red trendline
2. RSI also showing weakness not being able to hit the channel ceiling
3. Risk-reward of this trade is decent
Entry: 118.5
SL: 121.5
Profit Target: 107.5
The IWM has been hovering sideways for since March 2014, forming a triple top pattern. In my opinion, now would be a good time to SHORT the IWM ETF, as:
1. Price was rejected off both the up-sloping blue dotted trendline resistance AND the down-sloping red trendline
2. RSI also showing weakness not being able to hit the channel ceiling
3. Risk-reward of this trade is decent
Entry: 118.5
SL: 121.5
Profit Target: 107.5