This seems exactly like last week. That is, a firehose of bad news all through the weekend, a big gap down on Sunday, and then, step by step, green across the board. Annoying. Absolutely annoying. Anyway, here’s IWM:
I’ll say a couple of things about what the small caps have been doing:
- Last week, on Friday, we finally broke the ascending trendline from March 23rd. The damage was small, but the break was real.
- It looked like we might break it today, but nope, it’s been very strong, at one point ascending well over 3%. A minor price gap, but still worth watching, is at the level highlighted above. This represents a pretty decent line in the sand to represent resistance.