The Invisible Line

A simple yet effective strategy for staying out of trouble in the market, chasing longs short-term, has been to key off the $116.15 area we observed recently on the IWM, ETF for the small cap-led Russell 2000 Index. That level has essentially been a resistance line for this rally dating back to September. 

Updated below on the 30-minute timeframe, we can see how that line asserted itself even as bulls flexed this morning, with sellers coming in and pushing price down below $115.50, too. 

Combined with weakness in biotech, as well as some selling in leaders before earnings (AMZN FB GOOGL), bulls are looking for the AAPL bid today to mark some type of meaningful rotation.

I wil cover those topics and more for Members in my usual Midday Video.