The Clear Winter Path

One interesting aspect about the price action in 2016 has been the weakness in the small caps staying within the confines of a well-defined falling channel, after the gap down to begin the new year, seen below on the hourly chart. 

If we had breached the channel to the downside for a bit, I would have thought a more textbook washout bottom would be seen. Instead, the channel continued to keep pushing down, as buyers stepped in this afternoon for an impressive bounce off the lows. 

Alternatively, a breach over the upper rail, roughly above $100 on the IWM ETF, would likely give some momentum for a short-term bounce. 

Elsewhere, TWTR is rallying again, despite a denial about a News Corp. stake. As usual, follow-through upside will be key, as it has been a missing element this year.