SPY & QQQ made new highs this morning yet the recent market leaders, the small caps, have failed to follow suit so far. A failure to do so this week would be bearish with IWM most likely going on to break down below the rising wedge pattern & falling to at least the 130 area.
IWM 60-minute Dec 13th
Ideally, IWM should remain below the top of yesterday’s candlestick (138.57) to keep the Evening Start Doji pattern intact or at least a solid close below yesterday’s highs. Regardless of what happens today, the markets have a tendency to go into a holding pattern in the last few days leading up to an FOMC announcement so while anything is possible, I don’t expect any major fireworks on the upside or downside until after 2pm ET tomorrow.