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Russell 2000: The Down-Channel

|Includes:iShares Russell 2000 ETF (IWM)

The Russell 2000 is currently in a down-channel as can be seen on the daily chart of the iShares Russell 2000 ETF (NYSEARCA:IWM).

(click to enlarge)IWM Daily ChartClick to enlarge

Chart by TeleChart

As long as the upper line of this channel remains intact, the short position via the Direxion Russell 2000 Bearish 3X ETF (NYSEARCA:TZA) can be maintained.

If this channel remains in-effect on a go-forward basis, we can expect new lows for the year in the Small Cap index by the end of the month or early next.

Disclosure: The author is long TZA.

Stocks: IWM