Eye On IWM Upside
by Mike Paulenoff
June 2, 2024 • 12:16 PM EDT
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.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
Three hours before the July Fed 31, 2024 (FOMC) meeting, I posted the following chart commentary about my technical setup work on 10-year Treasury YIELD and its actionable longer-term Treasury bond ETF, the TLT (20+ Year T-bond, ETF):Heading toward Fed Time, 10-year YIELD and TLT (20+ Year T-bond ETF) certainly appear to be anticipating lower interest rate news or innuendos from the FOMC statement (guidance) and Jay Powell in his post-meeting press conference.
On August 15, with XLV (Healthcare SPDR, ETF) approaching Mike Paulenoff's target zone (noted in an April 18th post), Mike responded to an MPTrader member's question about whether it was "time to sell and find something with more potential?" Mike wrote: "My short answer: no, it is not yet time to sell (although I will never dissuade anyone from taking profits and from ringing the cash register). My pattern and momentum work argue that upside potential extends from 156 to 161.
On August 6th, when UBER was trading 62, this is what Mike Paulenoff discussed with MPTrader members about the stock's technical setup in the immediate aftermath of the company's quarterly earnings report:"UBER... produced stellar earnings, albeit a bit light on next quarter's bookings. The stock is up 5.9% in pre-market trading within a near-term setup that argues yesterday's spike low at 53.25 ended a 35% correction off of the March high at 82.14.
At 10:45 AM ET on Friday July 26, 2 hours 15 minutes after the release of important PCE (Personal Consumption Expenditure) inflation data, this is what Mike Paulenoff discussed with MPTrader members about SPY (SPDR SP500 ETF):"If I have a concern today it is the unfilled up-gap left behind from last eve's 4 PM ET close at 538.32 to the low of the AM session so far at 541.25.
On June 24, 2024, I posted the following chart-based commentary about PFE (Pfizer, Inc) to the MPTrader discussion room:PFE (Pfizer) has the right look of a setup that is on the verge of entering a central, bullish price thrust from within a December-June rounded bottom formation. Only a failure to push up through and close above the 200 DMA, now at 28.94, followed by a decline that breaks last week's low (6/14) at 26.87 will Neutralize my currently bullish bias... Last is 28.27...