IWM / SRTY

The IWM is starting to fall apart as I suspected it would, I may enter a position in SRTY for a quick trade if the conditions are right and we have enough time in the day left for the conditions to be right.

I'll show you what I'll be looking for, but it really has most to do with SRTY having a big enough base to make the trade worthwhile, otherwise it's just a likely head fake move in IWM out of the range and back in to it.

 Remember the strong volatility in the IWM intraday chart from earlier? We have a decent looking 1 min positive divergence that should send the IWM up intraday, it really doesn't matter if it makes a new high or falls short, it's more about time and lateral or consolidation trade to allow SRTY to put together a stronger base to move from.

 IWM 2 min leading negative , the 1 min positive isn't seen here because it's not strong enough to be seen here, it's more or less intraday movement.

 The 3 min chart is seeing the deterioration from the 2 min migrate over and this is now leading negative and also was relative negative at the IWM's intraday highs today.

 That weakness is migrating to the 5 min chart.

 Remember the first market update of the day, the IWM 10 min is what I was interested in? I'd like to see the negative divergences of the intraday charts to move to the 10 min, that would suggest a bigger move worth taking a shot at.

SRTY-3x short the IWM

 The 1 min chart saw a lot of fast moving strength build in at its lows today, obviously I don't want to chase this, I want it to come down a bit and build a stronger positive divergence, that's where I'd be interested in a quick trade here.

 The migration of the positive divergence from the 1 min SRTY chart is now on the 2 min

 and  the 5 min

And also the 10 min, but unless it pulls back offering a better entry/less risk and most importantly, a stronger positive divergence and base to move from, then it's just more of a sugar rush move.

If you are interested, you might set some price alerts for a pullback, we still have plenty of time in the day.