Eye on IWM 20-Day DMA

Another marker for today is the 20 DMA of the IWM, now at 148.58, which is being tested by today's early session weakness in the Russell Small Cap ETF. A close below the 20 DMA will be a signifiicant technical "event," and will trigger a next downside target of 145.00-144.30. 

Conversely, the ability of IWM to hold and to close above the 20 DMA will mean that we should continue to consider all of the action off of the 10/09 high at 150.68 as a shallow digestion period ahead of upside continuation within a still-incomplete Aug.-Oct. upleg.