have been curious about iwm / spx divergence. had considered buying iwm calls.. am going to pass.
will the 'trade deal' save huge american companies? Will China's new presence in global economy cause our next recession? Will our bloated, lazy multi-national corps struggle to innovate?
These are the questions.. Answers likely not too...
Previous significant market top that formed a mini double top and drop looks to be happening again.
Monday we should see another gap down and continued follow-through selling, or at least next week which should create a spike in the vix as shown here: www.thetechnicaltraders.com
IWM is looking vulnerable, printing a red day Friday while its peers $ES_F, $SPX, and $SPY closed strong. RSI may be stuck at the top of a downward sloping channel, and it's sitting at the top of a chop/consolidation zone. A failure to breakout here will likely result in a short-term correction.
Should this happen, it's likely a hint of what's to come for the...
IWM appears to be in a reverse head & shoulders pattern with decent upward momentum. With IV rank close to 11 as of the prior close, I will be working an order of 1.75 Db. for a 156/159 call debit spread on the May 17th expiration.
IWM is currently with a complex inverse head and shoulders pattern, and we are now sitting just below the neckline. It is trading above the 50/100/200 day moving averages, and it looks like a golden cross (50 MA crossing the 200 MA) may occur soon as well. Setup looks good, but it needs to break above the flat line of resistance around $158.60 to get moving. I...
bout to be dand-rough for bears because this baby got a mean inverse H&S with some other solid indicators going in it's favor.
RSI still has a little room to run, yesterday the 200 day ma was regained and today it held strong.
The trend is steady climbing, once we break that neckline there is some serious growth potential.
Looking at a possible $30 dollar + move in the Russel 2000.
Tech Analysis: Charting an inverse head and shoulders pattern on the Russell 2000 plus MA cross over of the 50 day and 200 day Moving Average.
Fundamentals: China trade deal looks good/ added 196000 jobs this month/ Mueller Probe appears to be good so far for the USA.
Things to watch for: strong...
While the large-cap stock indexes like the $SPY $SPX $QQQ $DIA have been running higher, they are now at resistance and should stall out or at least slowdown. Small-cap stocks have been building a base for a mega rally that could make the large-cap run look like chump change!
See more analysis on the small-cap sector: Click Here