Small Caps (IWM) - It seems IWM is having a hard time making it back above the black line (13-year trendline) this week and closed right below the purple line (since-2009 trendline) today. Note that in early January IWM broke below the purple line for the first time and dropped a lot.
Traders have seen this before, and it continues to play out as the global economic climate breaks down. Although these pullbacks in the SPX are often lofty and swift, it is important to realize volume is the most import factor when considering the validity of a pullback.
Here , we can see that the move in SPY is volumeless. The entire squeeze from the Feb. 11...
Inventergy Global Inc. has formed a bowl bottom and is retesting a key level of resistance at 1.89-1.90. We have a bull flag on the right and the price is above the yellow 13 day exponential moving average (EMA) which is a very bullish sign. INVT released a press release that will serve as a catalyst for the long side. They get to clear their balance sheets and...
$TF_F $RUT The nested Bullish Shark and Bullish Alternate Bat patterns on $IWM suggest a move to 114.50-115 - late Q4 2014's lows - to fully build out. Objectives off a bounce there lie at nodes around 122 and 123.75. Further afield, there is the potential where resistance ~122 holds for a Bearish 5-0 to develop. $TF_F $RUT
The Russell 2000 boasts a whopping 89.27 P/E ratio and a dividend ratio of 1.36 percent. There actually is sometime that pays less than a US 10Y (for now).
Seemingly an index that is traded off of technicals, traders could see today's rapid pullback as the beginning to a larger correction. After a double-doji top, the Russell 2000 could not expand upon all-time...
The Russell 2000 Index has reached important Fibonacci projection levels. We are expectiong a down wave (4) towards the 1060 area. Only a new weekly close above 1268 would invalidate this bearish scenario.
On the this week's Weekly Markets Analysis newsletter, I've mentioned that 120 is a crucial level in $IWM
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Today, $IWM broke down back into previous resistance zone and closed below 120$. If the price will stay below that level, it could be a major bearish sign for the Russel.
The only thing separates $IWM from falling apart right now is...
$IWM had a nice reversal over the last trading week, which I've i traded successfully (special alert letter was sent to the Elite Zone members - Become an Elite Zone member - www.themarketzone.net)
Now $IWM is facing the same resistance it broke during February and it should act as support (if it wasn't a false break)
120$ is the crucial zone to monitor this...
For something on a longer time frame, here's one that I see playing out. The small caps have been diverging from the main indexes for some time now failing to make any new highs. In fact, it just broke through a multi-year trend line from 2010.
It is looking very weak on the weekly chart with an obvious RSI divergence, I think it is letting out some air and I...
The Russell 2000 has seen strong moves to the downside, as market participants wonder whether or not there is a market top in place (regardless of what CNBC says),
Price action is in an important place, resting on an ascending trend line created in mid-June. A break (with a retest and rejection of new resistance/former support is best) would iniate a short...
Looks like a double zigzag is in the cards ... but could go lower for the 1,168 fib for completion. A capitulation flush and then a strong bounce up. But i'm hesitating to go in for more than a scalp here. Monday could be the day of good timing after a friday sell off before close.
Time will show
Safe trading here ladies and gents!
BM
