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Key Reversal Possible In The Russell 2000

|Includes:iShares Russell 2000 ETF (IWM)

The previous update showed that the iShares Russell 2000 ETF (NYSEARCA:IWM) was on track to post a new monthly low during July or early August.

If the new low takes place in July, the IWM will have posted an outside-down or key reversal on the monthly chart.

The monthly chart of IWM is shown below.

Highlighted on the chart are the two previous instances of a monthly key (down) reversal.

(click to enlarge)IWM Monthly ChartClick to enlarge

Chart by TeleChart

The go-forward plan is to continue to watch for a key reversal in the IWM and then assess possibilities (and targets) for further downside action.

Disclosure: The author is long TZA.

Stocks: IWM