That would be comical.

would you consider that IWM has now broken the uptrend?

Thx for the bump as I had planned to revisit the pot stocks & post an update. As I mention in the video, I had missed picking up on the bullish setups on many of the big pot stocks leading up to the elections & the breakouts since had run the pot stocks up too high, too fast, & into resistance so it was best to wait for the next objective entry.
I’ll have to study the charts of my baskets of pot stocks as soon as I get a chance but at a quick glance, MJ offers an objective entry or add-on with this pullback to the primary downtrend line following the recent breakout & reversal off the 15.28ish resistance level (daily chart).

First resistance on IWM comes in around 173.43 or so, as shown on this 15-min chart. After that, it’s mostly blue skies other than Monday’s reaction high.

Just don’t fall in love with an IWM or /RTY long as IWM has a monster gap below that could be backfilled, should that uptrend line go with conviction & the large-caps also take a decent leg down.

Depends but typically, I will give a higher weighting to the index ETF charts. Of course, it’s best to keep a close eye on both the index ETFs & futures and not just the index you’re trading (SPX, NDX, RUT, etc..) but all the major indexes. The more bullish or bearish ‘evidence’ you have to justify a long or short entry, the better.
e.g.- If SPY, /ES, QQQ, & /NQ all break out above key resistance level or bullish chart patterns around the same time, that’s a much better buy signal than just SPY breaking out as QQQ may be trading at resistance at the time & end up getting rejected off that R level, thereby resulting in a failed breakout in SPY.

Hi Randy, Where would first resistance level be on IWM since we are so close to making all time highs?

Intraday bullflag break out to the upside now for RTY. This thing may be just too strong to see more selling?

That would be interesting. I’d imagine the impulse trade if that happens is to reverse the rotation trade and get long QQQ and short IWM, which seems to be happening today.

That was indeed a nice bounce for RTY off the trendline, and it could be bullflagging now intraday. At the same time, it seems to me that RTY needs a little more consolidation before more meaningful upside, and might get a little bigger pullback below the trendline, with support around 1700 or even 1650.