Still Some Trouble from Above

Despite early strength at the open, small caps are back in the red as I write this, with the IWM ETF still struggling with the $115 level, above. We have been keying off the triangle pattern (of lower highs, but higher lows) forming on ETF throughout December, highlighted below, as a means of providing context to the price action. 

Overall, the broad market has enjoyed a holiday rally the last two weeks. But headed into 2016 it is still likely necessary for small caps to regain some of the lost ground they suffered this year in order to add credence to the bull thesis of an imminent, sustained uptrend. 

Elsewhere, WTW is back in play as a squeeze idea, but needs to clear its 50-day moving average now. 

And natural gas is finally coming in after a sharp, multi-day squeeze. Inventory is tomorrow morning. But Members are stalking the commodity for a possible higher low into 2016 for a lower risk entry, if at all. Of course, we know from crude oil that we cannot assume a bottom, as many traders found out the hard way this year.