Observe below the 60 day intraday chart of the IWM. As is plain to see, the frantic purchases by the Fed aborted yet another trendline failure – – PRECISELY to the pixel, in fact – – and we have gone vomiting higher. The bounce is weary, though, as we are pushing into a mountain range of overhead supply (on top of the fact that the abortion of the pattern completion has been achieved by the Fed). So here we sit, teetering vastly higher than we were only three trading days ago.
Take note of the horizontal line at 221.13. We have sealed up the price gap, and it’s all up to Jackson Hole at this point (more precisely, Powell’s yammerings Friday half an hour after the opening bell).
The small caps pattern is exceptionally well-formed, and the failure point is as plain as day. Slip below this range, and that breaks the trendline I’ve circled……….which means game over.
