Entering text into the input field will update the search result below

Russell 2000: Potential To Accelerate Lower

Jul. 24, 2014 10:22 AM ETIWM2 Comments
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Moments ago, the iShares Russell 2000 ETF (IWM) completed a counter-trend move with a false breakout to the upside.

Price action is now well back into the previous day's trading range (confirming the false move).

The target for the next leg of the IWM has already been established to be in the 104 - area.

IWM Hourly

Chart by TeleChart

If the IWM continues to adhere to an Elliott Wave structure, then this move is the one that will result in an overall recognition by the public at large that a trend-change has occurred.

For those that are just joining these updates. This trend change had been previously identified weeks ago in this prior update.

As can be seen from that July 3rd update, it was nebulous as to if a reversal had really occurred.

Based on research of Livermore and Wyckoff, this location (July 3rd) is exactly the spot where they would have initiated a short position.

Disclosure: The author is long TZA.

Additional disclosure: Illustration only. Not investment advice

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You