Thursday, October 20, 2016 2:46:08 PM
IWM remains at a most interesting juncture. The broad market environment is bullish, IWM is at support and financials are leading. Note that the financials sector accounts for 17.67% of IWM. This used to be higher, but REITs have been removed and this group accounts for 8.17% of the ETF. Information Technology is the biggest sector at 17.71%. Together, finance and technology account for around 35% of IWM and these are the strongest sectors right now.
On the price chart, IWM gapped down and RSI(5) became oversold for a mean-reversion setup last week. The ETF firmed after this gap and I am watching 122 for a short-term breakout. As with SPY and QQQ, my short-term concern is with the rising flag and a break below 122 would be short-term bearish.
On the price chart, IWM gapped down and RSI(5) became oversold for a mean-reversion setup last week. The ETF firmed after this gap and I am watching 122 for a short-term breakout. As with SPY and QQQ, my short-term concern is with the rising flag and a break below 122 would be short-term bearish.
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