It’s All Connected

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Last Thursday, I pointed out a potential inverse head and shoulders bottom on a 5 or 10-minute timeframe of the IWM, ETF for the small caps. Indeed, with Friday’s move higher that pattern ended up proving true. With the selling that we saw yesterday and this morning, the inverse head and shoulders bottom’s veracity was called into question. However, with this afternoon rip higher today, you can see the price memory telling us this is a significant short-term level. Thus far, the bears have been unable to really puncture the $72 level. Accordingly, despite the selling last Thursday, yesterday, and this morning, the bulls are keeping it all better connected.

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