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Poor Prospects for ISHARES Russell 2000 ETF (NYSE: IWM)

|Includes: iShares Russell 2000 ETF (IWM)

July 8, 2010

Shares of the ISHARES Russell 2000 Index Fund ETF (NYSE: IWM) rose some 3% in Wednesday’s strong stock market rally.

But while they performed well this day, they were unable to close higher than the prior day’s intra-day highs. If this was a breakout rally from the long correction, it lacked a breakout.

Add to this the poor performance on Tuesday, July 6 when the stock market closed with a gain and IWM closed deeply in the red, IWM is underperforming.

IWM has declined 21% from peak to trough in this correction which puts it in bear market territory, at least for the small cap sector.

IWM remains below its 50-day moving average as well as its 200-day moving average. We would be hesitant to consider a bullish trade in this ETF until IWM closes above that 200-day average currently at $63.81.

The Fibtimer.com (http://www.fibtimer.com) ETF Timing Strategy holds a position in ISHARES Russell 2000.



Disclosure: The Fibtimer.com (www.fibtimer.com) ETF Timing Strategy holds a position in ISHARES Russell 2000.