Take a look at the IWM (ISHARES RUSSELL 2000 INDEX FUND) chart below. This index, along with the SPY, DIA, and the S&P and NASDAQ futures gave a CROSSHAIR signal on my weekly charts two weeks ago. A CROSSHAIR on the WEEKLY chart usually indicates that a move in the direction of the CROSSHAIR, in this case a bullish one, can last anywhere from weeks to months, with opportunities for pullback entries on smaller charts. In this case, the pullback was to the 50 SMA on the DAILY chart.
I have measured the last two moves of the IWM that most closely resemble the current move to determine when the current bullish move may pause again or come to an end.
Move “A” is from July 2009 and comes from a push off the 200 SMA below the 50 SMA and move “B” is from December 2009 when the IWM crossed the 50 SMA, tested, and then move considerably higher. The current move began below the 50 SMA and above the 200 SMA, pushed through the 50 SMA, tested, and is now rocketing ahead. Notice the “A” and “B” measured lines indicate a possible move up to and through the 200 SMA “TANKS” from the IWM WEEKLY chart. We could be headed there, or at least to the WEEKLY 200 SMA before we have to consider a pause or a reversal.
Just me thinking and anticipating. It’s worked in the past, so there is a distinct possibility in will continue to work now and in the future. One caveat: anything can happen in the market and often does.
DISCLAIMER: Nothing here should be construed as a solicitation to buy or sell the securities mentioned. This is for informational purposes only. You should always do your own homework.
