Small Caps At A CRITICAL Point! Russel 2000 (IWM) >=D

Hi friends! Welcome to this update analysis on the Russell 2000, via the IWM ETF! Let's get right to it! Looking at the daily chart, you can see that the IWM has tested the falling red tredline over the past two sessions. In fact, in each of those candles were able to pierce above the red trendline, with Friday's candle closing right at the red trendline. Today, the futures are pointing to an open that will be slightly above the red trendline, so it will be interesting to see how the IWM responds. Either way, we are definitely in triple top territory, as you can see by the three highs that have been made, assuming that the current price action does in fact make another peak here. With that said, if we don't begin to see a reversal away from this level, that may be a sign of sustainability. If you look at peaks 1 and 2, both of them reacted very quickly back to the downside. Here, we're spending a bit more time at the third peak, so it's currently unclear how price will react at these levels. Ideally, I would like to see a big nasty red reversal candle today, to confirm that the market is finding resistance here.

Looking at the volume, you can see that it is falling and remaining below average, but the bulls had a clear advantage in the market last week, as they pushed the IWM higher. If the bulls manage to close above peak 1, that could signal significantly more upside in the market, possibly up to the top of the black channel. So, we are definitely in a very critical area, which could be the fulcrum of a major move higher, or lower. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-Magic loves you-

-JD-