Small caps lead rallies and sell-offs, this is no different.
Skilled traders watch all the charts to assist them in identifying characteristics that can assist them in understanding price moves, key support/resistance levels, and price patterns. This IWM chart should be on everyone’s radar at the moment. Where the IWM finds support, so will the other US stock market indexes.
The IWM setup indicates we may only see a 5~7% downside price swing before support is found. We’ll have to watch how this plays out over the next few weeks/months to determine if the $144.25 level is true support or if the lower $137.00 level will become support. Either way, the downside price swing appears poised to unfold over the next few days/weeks – so be prepared.
I authored a research article about this pattern setup on February 17, 2019. You can read it here.
The IWM setup indicates we may only see a 5~7% downside price swing before support is found. We’ll have to watch how this plays out over the next few weeks/months to determine if the $144.25 level is true support or if the lower $137.00 level will become support. Either way, the downside price swing appears poised to unfold over the next few days/weeks – so be prepared.
I authored a research article about this pattern setup on February 17, 2019. You can read it here.