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Russell 2000 Small Cap: Squeezes Out A High

|Includes:iShares Russell 2000 ETF (IWM)

The iShares Russell 2000 ETF (NYSEARCA:IWM) was heavy most of the session until the last two hours of trading where the index moved higher into the close.

Volume increased by 41% from the prior session. The IWM posted a gain on the day of 14-cents to close at 109.50.

It may not appear to be so, but the index is still sub-dividing lower.

That could all change at the next session. For now however, we see from the daily chart below that the IWM is still sub-dividing lower with successive lower highs and successive lower lows.

IWM Daily Chart

Charts by StockCharts.com

The last sub-division high (our stop) at 109.81 has not been breached.

The fact that IWM volume increased by over 40% from the previous session, posted a marginal gain of 14-cents and was not able to post a new high, still favors the down-side.

As previously stated, we are not short the IWM, but rather long the Direxion Russell 2000 3X Bearish ETF (NYSEARCA:TZA) with a stop at 20.39.

Disclaimer:

This report is for discussion purposes and contains our opinions only. This posting is to publicly document our thinking and market analysis actions within the Three Ten Trading entity. The data was obtained from sources believed to be reliable. However, we make no guarantee as to the accuracy of that data.

Investing or trading in equities, futures or options may result in a significant loss of capital, total loss of capital or a loss greater than available capital.

We are not advocating any stock or in any way offering portfolio management advice or stock selection service.

Respectfully,

Paul Mosgovoy, President: Three Ten Trading, LLC

Thank you for reading.

Disclosure: I am long TZA.

Stocks: IWM