Yesterday's bear flag formation, breakdown & follow-thru price action in IWM could not have been any more 'textbook' perfect. However, the small caps were saved by the bell before playing out to the measured target (or my target zone). As of 8am ET, IWM is currently trading just below 107 in pre-market. Either those gains must be faded before or immediately after the open, or the symmetry of this pattern will be foiled.
As of shortly after 8am, QQQ is poised to gap up to just below this resistance zone, where I favor a reversal.
The 60-minute time frame (below) supersedes the developments on the 10-minute chart. This bearish rising wedge breakdown on QQQ still appears to be in the very early stage of what would project to a much larger downside move.
By all accounts, this bearish rising wedge breakdown on the IWM 60-minute chart likely sparked an intermediate-term downtrend that should bring prices lower in the coming days/weeks unless it proves to be a major bear-trap/whipsaw signal.