Jjyk21- Check out the video that I posted shortly after the close today. It addresses the big disparity between QQQ & IWM as well as the primary driver behind the gains on each (i.e.- the biotech stocks within each index). The unusually large gains in IWM were attributed to not only a substantial amount of biotechs with the Russell 2000 but more so, the fact that their smaller market capitalization lead to huge gains. I didn’t count out the exact number of biotechs within this number (although it was a lot) but there were exactly 171 stocks of the 1979 total stocks within IWM that had double-digit gains (10%+) today including 15 of those up 20% or more. Hence, the out-sized gains in IWM today.

I understand the sector rotation going on here as a result of Trump being elected. The deviation between QQQ vs. IWM/SPY is quiet large, will this pull QQQ with it to the upside?

Thanks, Randy

covey- Upon further review, I added a minor downtrend line off the highs on IWM that could also be used a stop level (daily close above) which should come in less than 1% above current level regardless.

An IWM short here with a stop on a daily close 1-2% above today’s high of 121.81 seems very objective IWM is currently trading at the top of a major resistance zone.