Each time IWM failed a breakout this year resulted in a significant drop of the market. Yeah!

I address that in the video that was just published. Essentially, it is fairly common for a stock or index such as IWM to move marginally below the previous breakout level before resuming the uptrend in the direction of the breakout. The breakout level on IWM was approximately 159-161 on IWM & there is some support from the lows on the candlesticks just before the breakout around 157.25 or so which is where I think that we would be able to say that the recent breakout has failed with a fair degree of conviction, if IWM makes an impulsive move back down below that level.

It would also be prudent to factor in what SPY & QQQ are doing at the time if IWM starts to move back down below 159. For example, are SPY & QQQ still above or coming up to key support levels at the time if so?

@araleia – I totally agree, I believe if IWM loses altitude I think that would be a strong clue