A Close Shave

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Just a few days ago, the small caps (by way of IWM) got heart-stoppingly close to busting above a long-term resistance line. Mercifully, the trendline did its job well and repelled the price action.

The longer-term view illustrates why this repulsion was so important. We seem to be in the throes of a third major reversal of the IWM over the past few years.