Peer Around the Corner

Updating the small cap ETF chart we looked at yesterday, the 30-minute timeframe for the IWM, Russell 2000 Index ETF, shows the highlighted rising wedge having broken lower. 

However, as this rally has unfolded we have seen these types of instances merely amount to a reset or refresh of the rally, eventually breaking higher yet after peering around the corner to tease a move down. Thus, bears likely need to break us back below the morning lows of $117.76, in all likelihood, if we are going to see a more meaningful rising wedge breakdown in lieu of a simple case of chart patterns morphing. 

While that is playing out, it is interesting to see the dispersion among leadership today. AMZN FB GOOGL NFLX are leading the charge higher, oblivious to the rest of the tape, while CMG and now UA look to be losing steam. UA below $93 would be a warning sign, in my view, that the leading issue may follow CMG lower. 

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