Today's action and uptrend line break support there is likely more bearish action ahead.
Since my last posting 6 days ago the RSI on the 2 and 4 hour charts have developed a bearish divergence after the negative reversal. This combo often leads to lower prices. Price is at the upper channel trend line. I favor that price is forming a 5 wave triangle as often occurs in the wave 3. If so I will take partial profits at "D". If you are not already short...
Have been on vacation. IWM looks at least short term down from here. Nice down channel. Nice negative reversal in the 4 hr. RSI. Would expect drop to at least close gap. More likely will go to the D level. Some chance could crash down from here through channel if we have a 1-2, .1-.2 set up in the 3rd wave down. 2x bear ETF: TWM. 3x bear ETF: TZA. Take...
How can one make a bullish case for this chart?
At 2:30 on Friday the IWM broke down below a three week long bottom trendline.
Major resistance. Upcoming significant Convergence • Retracement at Fibonacci .618 • 200sma • Trendline • Ascending bearish wedge • Stochs rolling over
First off, I'm new to the TradingView publishing arena so please bear with me if I'm doing something wrong. Please advise if I am. This is an IWM weekly chart with projections derived with Fibonacci retracements, SMAs and trendlines.
Ok...we are not perfect and make mistakes. Price touched our trigger zone and we failed to get short. Bummer! We like to see price get into the zone...but its not a hard fast rule. It would have been a great trade. However, we are now back into the flag range which confirms a failed breakout. We will look to get short on any moves to the upside. ...
The Russell still has some ways to go until hitting her breakdown levels. It's lagging the $ES an $NQ. We will watch the 1152.00 area to see if price can hold. If we see price trade below this area then a squeeze could be in play. Be patient and wait for a trigger.
As with the ES...the NQ is in the same boat...although it has not broken down it's support level. If the NQ takes our support look out below. We are looking for bounces to short. NO TRIGGER...NO TRADE!
$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
This chart shows weekly performance of QQQ vs IWM. The idea is the same as here Assuming orange band resistance holds: 1st target - 34EMA 2nd target -125 EMA 3rd target - rising channel support
Trend is upwards but i think we will see a correction to lower trend line before the trend can continue Fundamentals: US Industrial Production Revised Down in June US Consumer Sentiment Falls in July
We see some major indices in final stages of an extended third wave, that could cause a temporary high on stocks, as we expect a deeper retracement in to a corrective wave four. On some of them we also see a wedge pattern in current late stage of an uptrend. It is called an ending diagonal, that usually causes a sharp reversal that may happen sometime this year....
Could be another bounce up but I think there is a good chance new downtrend has begun. Some shorter term volatility index indicators I follow for the Russell 2000 (one and two hour RVX) have turned positive (negative for the index).
It appears the suspected decline is underway AND it looks impulsive suggesting it is not over yet. Maybe for the short term but it looks like we are in for a couple of weeks of weakness and if we are correct, we would need at minimum an ABC down to complete a corrective decline of some sort before another serious wave of buying emerges. For the very short term...
that's see if it drops further tomorrow for confirmation for a short opportunity.
The Russell 2000 shows a compelling picture suggesting some kind of decline has started. Just don't know the intensity. Using the wave principle, from May 2014 down to the October low, we do have a clear cut ABC and that was telling us to expect a rally which indeed we got. Now that rally appears over AND stalled at the point were a potential wave B wave equals...