Russell 2000 (IWM) Stalling at Resistance
The major US indices are stalling today at major resistance levels. The Russell 2000 (IWM; see also RTY CME Futures) has reversed right at a Fibonacci cluster (shown by the blue circle) that coincides with a 7 month downtrend line that has remained valid since November 8, 2021.
RSI is confirming a likely reversal. RSI has reversed right where RSI peaked at the end of the powerful 2H March 2022 rally. The arrows indicate the current RSI peak for Russell 2000 as compared to the prior peak on March 29, 2022.
Given short-term momentum having turned bullish after the recent multi-day rally, this is a countertrend fade idea for the short-term trend, i.e., the trend over the past 7-10 trading sessions. However, this bearish view is a trend-based view that remains consistent with the longer-term downtrend that has persisted since November 8, 2022.
Near-term targets lie at 177 and 175 USD on IWM, the ETF that tracks the Russell 2000.
DISCLAIMER: This idea is solely for educational / entertainment purposes and does not constitute financial advice or an investment recommendation and cannot account for any person's particular financial circumstances. The author would never want other investors / traders to lose money by relying *solely* on this idea rather than doing their own due diligence. Before entering any trade, please evaluate the risks of (i) the instrument / security being traded, (ii) the type of trade and its timeframe, (iii) risks inherent in that type of trade and its time frame, (iv) the inherent risks of shorting securities (presenting unlimited risk without hard stops in place), (v) the inherent risks of trading options, leveraged ETFs, and cryptocurrencies, and (vi) all financial risks arising each person's personal financial circumstances.
IWM
IWM
RUT
RTY1!
RUT
RSI is confirming a likely reversal. RSI has reversed right where RSI peaked at the end of the powerful 2H March 2022 rally. The arrows indicate the current RSI peak for Russell 2000 as compared to the prior peak on March 29, 2022.
Given short-term momentum having turned bullish after the recent multi-day rally, this is a countertrend fade idea for the short-term trend, i.e., the trend over the past 7-10 trading sessions. However, this bearish view is a trend-based view that remains consistent with the longer-term downtrend that has persisted since November 8, 2022.
Near-term targets lie at 177 and 175 USD on IWM, the ETF that tracks the Russell 2000.
DISCLAIMER: This idea is solely for educational / entertainment purposes and does not constitute financial advice or an investment recommendation and cannot account for any person's particular financial circumstances. The author would never want other investors / traders to lose money by relying *solely* on this idea rather than doing their own due diligence. Before entering any trade, please evaluate the risks of (i) the instrument / security being traded, (ii) the type of trade and its timeframe, (iii) risks inherent in that type of trade and its time frame, (iv) the inherent risks of shorting securities (presenting unlimited risk without hard stops in place), (v) the inherent risks of trading options, leveraged ETFs, and cryptocurrencies, and (vi) all financial risks arising each person's personal financial circumstances.
IWM
IWM
RUT
RTY1!
RUT
Comment:
Volume on the Nasdaq the past 3 hours (NYSE is similar):
Comment:
Russell 2000 stalled where Wave W = Wave Y, a common proportion between corrective waves in zigzags and double zigzags in EW theory.
Comment:
SquishTrade
