I would have been more surprised today if the market had fallen again. What I would like to see going into the end of the week is just some stability and a signal that the market isn’t interested in dropping anymore, for now. The $SPX is now down 47pts on the week and I think it’s highly unlikely that we’re going to see those remaining points taken back by the close on Friday. Maybe the best longs can hope for is a solid close above 1200.
On this 60min chart of IWM, I am looking at Tuesday’s big gap down and Monday’s closing candle. If IWM is going to go higher from here, then the first obstacle it must overcome is that big gap. Getting there would put it into that big candle and if IWM can get up above 73.97 within a day or two, it is possible it will run all the way back to the top of that candle at 75.22, though not in one day. Just watch the trend line and the 13/34 EMA’s and see how IWM does in relation to them over the next two sessions.
Chart courtesy of FreeStockCharts.com
I’ll be traveling the rest of the week and the first of next week. I’ll try to get something up over the weekend, but no guarantees.