December 14, 2010
Shares of Ishares Russell 2000 Index Fund (NYSE: IWM) continue to rise but on Monday, December 13 they reached an important resistance level and reversed.
When we last checked IWM we noted that shares would reach initial technical resistance at the Fib 127.2% retracement level of the April through August rally. That level was reached intra-day on Monday and IWM immediately reversed, closing with a loss for the day.
The next few days will likely tell us if IWM has higher to go. A decisive close above $78.35 for IWM would point to higher highs and the next resistance level being reached at $83.61.
Should IWM be unable to close above resistance, the potential to decline to support at $74 a share will increase.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in Ishares Russell 2000 Index Fund.