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Small Caps Hit Hard In Wedge Reversal

|Includes: iShares Russell 2000 ETF (IWM)

It is fairly safe to say with thirty minutes left in the session, that the small cap iShares Russell 2000 ETF (NYSEARCA:IWM) is not coming back to its intra-day high.

In fact, this is a serious reversal where only the end of trading today may be the factor that stops the slide.

Price action has already eclipsed the prior three-day's action and it looks as if it may take out the prior fourth day as well.

The Direxion Russell 2000 Bearish 3X ETF (NYSEARCA:TZA) has moved up briskly and the initial entry at 14.05 is firmly in the green.

TZA: Daily Chart

Chart by TeleChart

This trade may have sustainability. There will most likely be other entry signals.

Disclosure: The author is long TZA.