All the major US Equity indexes have filled their Gaps from May 2nd... except for the Russell 2000. This is actually a short term positive as it makes the possibility of a quick rally as soon as it gets filled. I'm expecting it to be filled by early next week.
Gaps are somewhat like unfinished business, especially when referencing Equity Averages. Since all other indexes have filled these gaps, IWM likely needs to play catch up. Typically IWM leads on the way up as well as on the way down. By lagging on the recent selloff, it's an odd sign of potential strength.
I don't believe a rally is sustainable based on the intermediate term, but short term and lasting 2-4 days is certainly in the cards.
Gaps are somewhat like unfinished business, especially when referencing Equity Averages. Since all other indexes have filled these gaps, IWM likely needs to play catch up. Typically IWM leads on the way up as well as on the way down. By lagging on the recent selloff, it's an odd sign of potential strength.
I don't believe a rally is sustainable based on the intermediate term, but short term and lasting 2-4 days is certainly in the cards.