Today the Russell 2000 (IWM) finally outperformed broader markets, which were largely flat but IWM was able to squeeze out a +0.4%. In the intraday futures chart, was able to break a steep downtrend in afterhour trading, and should now charge towards the 1205-1210 area documented before. On the daily as well, we have a confirmed doji reversal off the breakout area just under 1180 which will provide strong support, and any dips (if there will be any) should be bought towards there. Positive seasonality will give us tailwind to the upside.
Also highlighted in our charts is possible bearish scenario after retesting the aforementioned resistance area. We will reassess if and when price gets to the 1205-1210 level but the plan is to flip to short there. But will take it one day at a time.
- 1192 – Pre-FBI candle high
- 1180 – Retest of broken downtrend and breakout area
- 1206 – Bottom of broken channel
- 1210 – Descending trendline off YTD high