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Paul Mosgovoy
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  • Small Caps: Back-To-Back Down 2 comments
    Jul 8, 2014 10:35 AM | about stocks: IWM

    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.

    (click to enlarge)IWM Weekly Chart

    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.

    Themes: Small Cap, TZA Stocks: IWM
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Comments (2)
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  • zaw77
    , contributor
    Comments (54) | Send Message
     
    Hi Paul, watching closely TZA today, seems much better so far. Regards, Chris
    8 Jul 2014, 10:48 AM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (115) | Send Message
     
    Author’s reply » Thanks Chris,

     

    This could be the start of a big move..............

     

    Paul
    8 Jul 2014, 10:52 AM Reply Like
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