May 27, 2011
Shares of the small cap ETF, Ishares Russell 2000 Fund (NYSE: IWM), rallied on Thursday, May 26. But they are now at a critical juncture.
IWM has been making lower highs during each rally attempt since its 2011 closing highs at $86.39 reached on April 29.
If you connect all the rally highs (closing prices) since that April high, you get a declining trend resistance line. So far every rally attempt has been unable to “close” above this declining line.
On Friday, May 27, IWM will get another try at breaking above this resistance line. If it can close above it, there is a decent chance we will see higher highs ahead.
And a decisive close above $84.00, the next resistance level, would add to the bullish scenario.
The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in the Ishares Russell 2000 Fund.