Let’s See if They Keep it Clean

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With the big moves in both directions, it is tough to gauge who really has control of this tape for more than one session. Looking at a 5-munute chart of the IWM, ETF for the small caps, you can see an inverse head and shoulders forming. This should be an excellent litmus test to see whether yesterday was simply a violent washout, or if it was the start of the bears seizing back control of this market. Watch it closely to see if it holds, and we get a clean pattern. I am looking for $72 to be the line in the sand for the pattern to stay true.

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