March 9, 2011
Shares of Ishares Russell 2000 Index Fund (NYSE: IWM) reached strong resistance, at $83.61, on February 17. One month later it remains below this level.
IWM immediately reversed and after several days of selling, recovered about 75% of the losses and has since been trading mostly sideways.
The next few days will likely tell us if IWM has higher to go. A decisive close above $83.61 for IWM would point to higher highs. Short term resistance appears to be at $83.00 a share, a level reached several times over the past two weeks but so far not surpassed.
So far the rising 50-day moving average appears to be acting as support on down days.
Should IWM be unable to close above resistance, the potential to decline to support at $79 a share will increase.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy has a position in Ishares Russell 2000 Index Fund.