From the cheap seats:
On the 60min chart using a 13/34 EMA setup, IWM has now closed well below both of these and the 13EMA crossed down through the 34EMA at the close in a mini death cross which puts IWM in the ‘AVOID’ pile in the 60min time frame.
Daily chart using the 5/10 method has failed to confirm the ‘buy’ signal given when both stochastics rose above 20.
The next phase of this particular ‘buy’ signal setup would/should come when the 5EMA crosses up through the 10EMA. This is a pretty fast moving setup and is designed to get a person in a trade just a little sooner than everyone else, but IWM has failed this test and instead of the 5EMA crossing up through the 10EMA, both EMA’s continue to point down. This means that in the daily time frame IWM goes back on the ‘AVOID’ pile.
I’m sure everyone on this planet has been screaming about the Bear Flag pattern in IWM for some time. But it’s only a potential Bear Flag pattern until IWM breaks decisively out of the bottom of the flag, and doesn’t look back. That bottom line comes in right around 65.00, so if IWM should close at 64.99 anytime in the next couple of days, then it probably will go the rest of the way and close below the important support/swing low of 63.24. Should this actually occur, then it’s anybody’s guess as to what happens next.
Chart courtesy of StockCharts.com
Only the paranoid are going to survive this market.