April 1, 2011
Shares of the small cap ETF Ishares Russell 2000 Fund (NYSE: IWM) broke out to new 2011 highs on Wednesday, March 30.
On Thursday, IWM rose again and confirmed the breakout, setting the stage for a continued rise over coming weeks.
Although many look at IWM as being dominated by individual investors, our experience tells us that strength in this index tends to lead the stock market higher.
How high? Initial resistance is at $85.40 and strong resistance is at $87.48.
A decisive close above $87.48 would be extremely bullish and point to a new leg higher.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Ishares Russell 2000 Fund.