shaggytrade

IWM Rally Around the Corner?

Long
IWM/QQQ  
shaggytrade Updated   
IWM/QQQ  
Bullish divergence is spotted on the IWM/QQQ chart, IWM is being dragged down because of Fed hawkish comments and KRE underperformance. This is a weekly chart so we need time for this to play out, I remain bullish on IWM for the remainder of the year, even just 1% of inflows from QQQ into IWM could make it go up 10%.

Comment:
With the Quad witching behind us (the biggest one ever), we are now seeing this play out more, QQQ is taking a breather and IWM is up which is a reversal in the trend for now. Lets see if the QQQ bulls step in or if this rotation is for real this time.
Comment:
We have 2 weeks of IWM out performing QQQ as you can see in the chart, it is a nice start but not a win.

We have J Pow speaking tomorrow morning at 9:30am EST and Jobs report, this is going to be a major catalyst for the market, I am still bullish on IWM, it needs to close above 203.6 here soon.
Comment:
At the time of updating this, IWM is up 3.5% and QQQ is down almost 2%. Time to take a small victory lap.
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