Broad Market Timing Trigger / IWM Set-Up

From yesterday's Broad Market Update we have the IWM set up mentioned as not only an interesting set up for the IWM in something like SRTY, Puts, etc, , but also in a wide range of assets, I even mentioned the set up as a timing factor in replacing the VXX/UVXY position closed last Friday in yesterday's VXX / UVXY Trade Set-UpUpdate post...

"Considering my opinion on a possible IWM/TF short term intraday move and the outcome, I think the charts below are very interesting, although they are still telling me to be patient before adding VXX or the 2x leveraged long UVXY long back in the line up. Consider the IWM triangle and most probable head fake based on technical trader's' expectations.

In that scenario, the following VXX charts make a lot of sense as does the trade set up and timing trigger."

And what was the set-up? From yesterday's Broad Market Update, here are a few excerpts with regard to the IWM specifically, but the market timing more broadly...

"

 IWM 5 min since the knee jerk higher yesterday. The yellow arrows in this instance are just pointing out a triangle. Considering Technical traders see this as a consolidation/continuation price pattern, what do you think the most probable course of price is?

I say a head fake (failed ) breakout to the upside first, pulling in new longs before a drop below the apex of the triangle locking longs in a bull trap.

Now you see why I'm waiting on entering some additional positions."

The market started to move toward that "most probable course" yesterday, see Quick Market Update, with some TICK and Yield support intraday.

As of right now, the anticipated IWM move is perfectly in place on Quad-Witching volatility/ stop hunt.

 Here's our IWM symmetrical triangle from yesterday which tripped the price triggers I set first thing this morning. Viewed by Technical Analysis, this is a consolidation/continuation price pattern, thus the most probable outcome is pretty easy to predict as we did yesterday in the excerpts from the Broad Market Update above.

As mentioned earlier, this also sets up a broad market reversal candle, a Bearish Engulfing or at least the first half of it, the second half will only be known at the close, but so far...

 There has been no intraday confirmation of the IWM this morning from yesterday's triangle and we already kknew that the longer term charts for this bounce had run out of gas in the R2K.

 IWM 2 min trend.

IWM 10 min.

The intermediate and longer term charts look great for a trade set-up, however as mentioned yesterday, with the shorter term charts which are the timing charts, I want to see the signals jumping off the chart, that's when I want to make any final moves in positions I'm interested in.

We should see broad signals across numerous assets including the VIX derivatives like VXX, not just IWMm so keep your eye out for the market updates.

Typically most max-pain pins (this is a bit different in that there was a strong stop hunt first), tend to end around 2 p.m. as most contracts are cleaned up by then.