here’s the updated IWM 60 min chart with another trendline that i recently added (top of parallel channel). as mentioned before, these wedge overshoots, like we’ve had on this 60 min wedge (noted on chart) can often, but of course not always, lead to very impulsive reversals to back within and then below the wedge. assuming this is only the very early stages of a much larger pullback, as i think it has the potential to be, then my original targets on this IWM 60 min chart, as well as the other 60 min index charts recently posted, remain as marked. of course, we need to see the lower uptrend lines breakdown first and then, i’d like to see an increase in volume on the selling. otherwise, the trend for a while now has been to buy the dips and there’s not much, if any, technical evidence yet at this point to say that M.O. will continue. i am also carefully monitoring the VIX for a potential breakout of that daily falling wedge to help confirm any longer-term sell signals. for now, it’s just way too early to infer anything anything more than a short-term pullback is likely. g-luck today and be careful on both the long or short side right now. nothing wrong with sitting on your hands right now if you are unsure what to do.
