Eye On IWM Upside

On Thursday May 23, with IWM trading at 203.19, Mike Paulenoff responded to an MPTrader member about his read on the IWM (Russell 2000 Small Cap ETF), writing:

"Bottom Line: Compared to the SPY, IMW is terribly weak, but in isolation, from my BIG Picture pattern perspective, IWM is gearing up for a rip-roaring advance after current weakness exhausts itself."

Fast-forward to this past Friday morning May 31, and this is what Mike posted to the discussion room for MPTraders:

"As long as any forthcoming acute weakness is contained above the 4/19/24 pivot low, my Big Picture set up work argues that IWM ended a two-year bear phase at the 10/27/23 low of 161.67 and then completed the first upleg in a new bull phase at the 4/01/24 high of 212.15 (+31.2%). Off of the April 2024 high, IWM completed a pullback into the 4/19/24 low at 191.34, thereafter entering another upleg that so far has hit a high of 210.67. All of the price action from the 210.67 high has the right look of a bullish digestion period and pattern ahead of upside continuation that will take out resistance at 210.75 to 212.15 in route to 222-226."

Trading at 203.98 at the time, IWM rallied to above 206 before closing the session at 205.77. What's next for IWM?

Login this week for our ongoing analysis and discussions with MPTrader members about the prospects for IWM and the equity indices generally along with individual equity names, sector ETFs, commodities, currencies, and Bitcoin.

More Top Calls From Mike

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!