Russell 2000 Update

While I suspect most averages will pullback as talked about yesterday and last night, it's the Russell 2000 that I'm most concerned with in a near term pullback, even though it is also one of the strongest longer term (60 min) positive divergences. I don't feel this way because the IWM has been the clear out performer the last several days, it's based on divergences which is also an interesting case.

Today as I said yesterday, I suspect higher prices are all that's needed, I don't even know that there would be an actual "Max Pain" pin as sentiment was so bearish with the fear and greed index at 0 for several consecutive days, I would suspect most retail traders bought puts and knowing retail traders, they bought near term expirations and out of the money strikes, thus virtually any higher price throws them out of the trade. That being said, I wouldn't expect any dramatic downside correction today, even though we have high volatility and today is the exact opposite of yesterday in which futures were down significantly overnight only to pop higher, at least the Russell whereas today they were up pretty significantly on ECB comments (I guess the F_E_D thought 3 days this week talking about QE might seem a little "market manipulative").

Here's what concerns me the most about Russell 2000 charts and thus far it's pretty isolated to the futures, but I suspect we may see more and more in the IWM today (by the way, this isn't the case for the most part for ES and NQ - SPX/NDX)...

 TF 1 min as seen at the open...

The more serious TF 7 min...

And 15 min.

I'd almost fade this, however until or unless I were to see the same depth of divergence in the IWM, I'd just be patient and hope we get an opportunity to get involved in some URTY at some point.

Just a head's up for anyone long the R2K.