The IWM ETF is the Russell2000 ETF, and I use it as a proxy of market internal breath. Case in point, we have a runaway Nasdaq (Technology sector) with a stalling S&P500. The small and mid caps need to be the internal support for this tech rally to continue else it breaks down from the internal infrastructure and implodes.
Exactly the heads up seen here...
The IWM Daily chart has not been able to get a higher high, but instead gapped down from the last lower high, at the top of a range (orange box). Yesterday, it tested the trend line support, and in doing so, turned the MACD far enough to register a down crossover. In a bounce off the trendline, it also bounced off the 55EMA, and appears to breakdown over he next couple of trading days.
Technically, this chart is bearish, and tells of the internal implosion starting to happen.
The Nasdaq rally is limited days to go... this is giving us a heads up.
Exactly the heads up seen here...
The IWM Daily chart has not been able to get a higher high, but instead gapped down from the last lower high, at the top of a range (orange box). Yesterday, it tested the trend line support, and in doing so, turned the MACD far enough to register a down crossover. In a bounce off the trendline, it also bounced off the 55EMA, and appears to breakdown over he next couple of trading days.
Technically, this chart is bearish, and tells of the internal implosion starting to happen.
The Nasdaq rally is limited days to go... this is giving us a heads up.
