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?
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