An Opening Tease

U.S. stock index futures had been indicating a fairly sizable snapback rally this morning, on the back of yesterday afternoon's upside reversal during the cash market hours. 

However, the initial move was blunted by sellers early on, as small caps were leading to the upside and just now briefly flipped red. 

On the 30-minute chart of the small cap ETF, below, we noted for Members off the open that the upper resistance trend-line dating back to last week would be a good initial test to see if sellers presented themselves. We saw just that, but now bulls are trying to regroup, which is something they have shown signs of doing in the last three sessions, just when it looked like we would completely fall apart. 

Below the surface, CYBR is up huge on buyout talks, while TWTR remains weak. And SUNE is still a mess, triggering circuit breakers down 15% at one point. 

The good news from this type of action early on is that the $104 level on IWM becomes even more pronounced now as a well-defined resistance level for bulls to clear, coinciding with that upper light blue line on the chart, below.