Thursday, November 14, 2013

Market Update, IWM & SRTY

There's not much moving in the market averages in 3C, it's obvious there's some caution in intraday charts, I have noticed some deterioration in slightly longer charts such as 3-5 min as seen in Index futures last night, especially in the SPY. Otherwise it looks just as dull as price generally.

However I still REALLY like the SRTY (Russell 3000 3x short) trading long position. Yesterday I pointed out what I believe is a channel buster and I want to highlight this chart one more time.

 IWM apparent (bearish) channel buster with a 5 min leading negative divergence, hence I still really like SRTY and still have that as an open long trading position at just about a flat return at the moment.

This is 5 min TF/ Russell 2000 Futures with that 5 min negative divegrence in the Index Futures.

I would set some alerts on IWM, if it breaks back in to the channel on the downside, there's a high probability that it falls to the bottom of that channel very fast, maybe further.

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