It’s IWM that is giving me heartburn. Off $0.90 cents yesterday from its intra-day high and then off $0.41 cents today. The Sto dropped below 80 a few days back and even with yesterday’s mega move the Sto has not yet gotten back above 80. Plus, IWM’s Aroon Oscillator hit 100 yesterday.
The bottom line is that the market will have trouble moving higher if small caps don’t join in the fun. While I’m several days away from getting a ‘sell’ signal on the daily chart of IWM, I’m about one candle away from getting a ‘sell’ signal in the 60min time frame, which would come when the 13EMA crosses down through the 34EMA. Not saying it’s going to happen, but it is very close and needs to be watched.
$SPX chart showing a dragonfly doji. It’s just a candle until it’s confirmed, and it, too, needs to be watched tomorrow.
As always, be careful.