That's Enough Dip

Despite plenty of room for the Dow, S&P, and Nasdaq to all come in for likely healthy and overdue pullbacks to test a modest reference point like their respective 20-day simple moving averages, the small caps do not quite have that kind of leeway. 

On the updated daily chart for IWM, ETF for the small caps of the Russell 2000 Index, below, we can plainly see the narrow range for most of this month is in danger of resolving lower with this morning's push back under $155 and even under $154 now. Naturally, bulls will view this move as a shakeout before a reversal back higher. 

But we can only analyze and trade what we actually see. And if small caps fail to muster at least a respectable bounce under $155 it may mean that the overall broad market rally since June is running on fumes. To be clear, bulls still do not need small caps to lead higher, just to simply stabilize and avoid dipping back below their 200-day moving average (yellow line). 

Elsewhere, I see silver continues to dazzle. A miner like CDE is waking up here, as we will focus on similar plays with Members to try to take advantage of this new development.