After breaking the near-term Accumulation/Distribution Range Ice to the downside, Path of least resistance is a retest of the Previous Accumulation Range Creek (Origin of Breakout) before continuing the Uptrend.
Distribution Range Breakdown 261.8% Measured Move Target @ 94.20
Two Legs Sideways to Down objective met.
05 Mar 2021 to 18 Jan 2022 Big Picture Distribution Range breakdown Black Swan Measured Move 1:1 Target @ 108.75
Short term Double Bottom for a Simple Corrective WXY or Complex WXYXZ before Downtrend Continuation.
Taking the ratio of the micro vs small cap etfs gives a pattern which looks to be forming a bullish structure. The second impulse could move it to the range shown.
Here in this position, it is clear that intensive work has gone into supporting the entire global recovery.
Moreover, we could already count the resilience in credit as ideal results from the covid siege. But now I want to focus on the US and small caps in particular are getting to work and the advance is leading to a more palpable exhaustion leg and opening...
Despite more than a 40% move off their lows, Micro-Caps still have lots of work to do... it will be important to see how price reacts to this area of potential overhead supply in the low 80's. This level is crucial as it represents the 2014-15 highs and 2018 lows. We saw the first try fail today. $IWC has achieved a higher momentum reading than any of the...
The iShares ETF that tracks more risky micro-cap stocks - IWC - reached an important 161.8% extension of a prior move. I think we could see a pullback from here to re-test the breakout level around $90. If appetite for risk stays strong, it could be a short-lived pullback, or if investors reduce risk, this could suffer more than the main indices and their ETFs.
NYSE Arca
