of all the major indices, IWM is my favorite short at this level. i believe that IWM will under-perform the SPY, QQQ, & MDY (mid-caps) going forward. to clarify what “underperform” means is that if the market turns down from here, IWM might fall 3% while the SPY only falls 2%, OR if we go higher, the SPY might go up another 3% while the IWM only rises 2%. under-performance is a relative term. here’s a 30 min chart of IWM showing we are now at resistance, where i’d expect prices either turn down, or at the very least, pause here for a bit.
