The iShares Russell 2000 ETF (NYSEARCA:IWM) is clearly showing signs of a major top and reversal.
Those that are still long the IWM are officially trapped. The reversal is confirmed as we now have a lower weekly low.
If this session closes lower and near its current low, then we will have back-to-back down days with a combined loss near 3%.
The IWM has been losing power since November last year and it now looks as if any remaining upward momentum has been spent.
Chart by TeleChart
Even a modest 38% retracement from the 2009 low, puts IWM nearly 30% lower than its 120.97, high.
Be on watch for the "it's a buying opportunity" crowd.
Disclosure: The author is long TZA.