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IWM Downside Targets/Support Levels

I've had several inquires lately about IWM (small cap ETF) as a short candidate to which my reply was; Yes, as a risk-on/risk-off higher-beta index, similar to QQQ, IWM will most likely outperform the large cap index tracking etfs such as SPY & DIA, should the markets move lower in the coming days, weeks or possible months. In fact, with IWM only recently breaking down below this wedge pattern & backtesting yesterday, it looks like there is plenty of meat on the bone left for a swing short trade on the small-caps (my preference being a TNA short). Any or all of these horizontal support levels down to the 102.72 area are likely swing targets for an IWM/TNA short trade.

IWM 60-minute May 3rd close

IWM 60-minute May 3rd close

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May 4, 2016 7:58am|Categories: Equity Market Analysis, Unofficial Short Ideas|Tags: , |4 Comments

4 Comments

  1. GetItRiight May 4, 2016 9:00 am at 9:00 am

    @rsotc Randy, can you do the same (static chart with support levels) for SPY? That would be useful to gauge reversal points for a quick intraday bounce. If you could do a daily and hourly, that would be great.
    Thanks.

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  2. dan123 May 4, 2016 9:59 am at 9:59 am

    Thank you Randy

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