Tuesday, December 9, 2014

IWM / TF Looks to Come Down Intraday

The IWM is the only of the major averages to fill its gap down from this morning, but it looks like it's getting ready to rollover, which some of you may be interested in being it is at an intraday area of relative strength.
 This is the relative positive divegrence shown in an earlier market update this morning that pushed IWM to a gap fill, but note the leading negative right now as price starts to round over, a reversal process (as opposed to a "V" shape reversal event which are far more uncommon.

Zooming in on TF/Russell 2000 futures intraday from the cash open, you can see they put in a similar early positive divegrence and the gap fill move for the R2K/IWM and TF is also showing a leading negative divegrence right now so I'd be looking for this to come down shortly.

I also noticed NQ/NDX futures putting in a stronger negative intraday divegrence, however QQQ is not confirming that yet, I imagine it will shortly.


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