January 11, 2011
Shares of Ishares Russell 2000 Index Fund (NYSE: IWM) have led the stock market in its four month rally. But share prices have been hitting important support during intra-day selloffs.
IWM has been unable to rise above $79.00 a share except for one day last week, January 3 when it reached $80.00 before closing at $79.60. But the very next day share prices dropped precipitously and closed at $78.42.
Over the past week intra-day lows have tested $77.50 almost every day, but still managed to rise by the close to end each day near $79.00.
If we hold here a new rally could easily take IWM up to $83.61. But if share prices close below $77.50 in coming days, look for a correction that could quickly reach $74.00 a share.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in Ishares Russell 2000 Index Fund.