Happy Friday, Slope! We made it through another week, and thankfully for the bears it has been a solid red week thus far. My primary focus remains on the Russell 2000. The chart of IWM is shown below. I will continue to highlight two areas. First, there is a significant POC cluster coinciding with value high this month that is serving as key resistance at the moment. That area is highlighted in red. Second, the October lows of last month are serving as key support. This support goes back to the pre-Covid highs. As we venture out into the remainder of November, I will give you three scenarios:
- The bullish scenario in my mind would involve IWM reversing back higher and breaking above value high at 177.2.
- I think key support for IWM going forward is going to be the October 2023 lows of 161.67. A consolidation scenario would involved retesting that low this month, but not breaking under it. This would allow for some consolidation of the past few months to take place as we head into the end of the year.
- The bearish scenario in my mind is to break under the October lows of IWM this month. This is a capitulation scenario in my mind. Under the October lows is a lot of open air for the bears to roam into. How far and how fast that happens is a choice I’ll leave to you.
I must say daily content creation for a financial website is a challenge. Big kudos to Tim for doing this day in and day out for as long as he has (Editor’s note: awww, shucks! We appreciate it, TNR!). I have enjoyed this week, but gladly look forward to Tim’s return. I’ll leave you with the below clip of JFK’s moon speech. It’s a favorite of mine, and yes… there were many, many times in our nation’s history when I was proud to be an American. This was one of them.
