Despite green tape in Tuesday’s initial trading, a look at the Russell 2,000 ETF’s (NYSEARCA:IWM) chart pattern shows why lower prices are likely coming.
Bottom line, the market looks to finally be heading lower, though we probably have a little bit of support around the $90 level on the IWM, which is still a little ways away; that would be the February lows.
Once the IWM takes out its February lows, then we’ll get into a gap area from the first of the year. Then, once we take out that, we’ll be talking about a lot lower prices.
[The iShares Russell 2,000 ETF (NYSEARCA:IWM) counts Ocwen Financial (NYSE:OCN), Axiall Corp. (NASDAQ:AXLL), Pharmacyclics (NASDAQ:PCYC), Two Harbors Investment (NYSE:TWO), Genesee & Wyoming (NYSE:GWR), CommVault Systems (NASDAQ:CVLT), Starwood Property Trust (NASDAQ:STWD), Dril-Quip (NYSE:DRQ), Alaska Air Group (NYSE:ALK) and Brunswick (NSYE:BC) among its core holdings.]
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