As a breakdown below this 60-minute bearish rising wedge pattern appears imminent & likely, IWM (Russell 2000 Small Cap Index ETF) will be added as an Active Short trade here around the 162 level at the top of the pattern with an alternative, more conventional entry or add-on to come on an impulsive break below the uptrend line.
IWM 60-min May 18th
The current price targets are T1 at 158.39 & T2 at 155.84 with the potential for additional price targets to be added, depending on how the charts develop over the next week or so. The maximum suggested stop (if targeting T2) is any move above 163.80. The suggested beta-adjusted position size for this trade is 1.0.
Alternatives to a short on IWM would be a long position in TWM (2x inverse/short Small Cap ETF) or TZA (3x inverse/short small cap ETF) with the appropriate downward adjustment to the position size to account for the 200% or 300% leverage.
IWM daily May 18th
Based on the scope of the most recent divergent high, the potential for a much deeper correction is IWM exists, should the 60-min wedge breakdown soon with IWM moving lower & confirming the divergences on this daily chart above.