IWM (Russell 2000 Small Cap Index ETF) offers an objective short entry on this bounce back to the 166.50ish former support, now resistance level & will be added as an Active Short Swing Trade around current levels.
IWM 60-min June 27th
The current price targets are T1 at 163.48, T2 at 160.85 & T3 at 158.46 with the potential for additional targets, depending on how the charts develop going forward. The maximum suggested stop if targeting T3 or beyond, is 170.40. The suggested beta-adjusted position size for this trade is 1.0. Based on the scope of the most recent negative divergences on the daily chart of IWM, I can easily see a move down to the 145 area in the coming months, about 13% below current levels.
IWM daily June 27th
For those looking to short the small caps for a pure-play short or hedge to their current long positions, RWM (1x/non-leveraged short), TWM (2x short) and TZA (3x short) small-cap ETFs are alternative proxies for shorting the small caps, particularly for those seeking short exposure in an IRA or other cash/non-margin account where shorting is not permitted.