The intraday action today is basically a slow drip lower, so I am focusing on the IWM, ETF for the small caps in the Russell 2000, which is now close to a perfect check back to, or retest of, its primary breakout point in September which you can see on the daily below. This is now becoming a major, not minor, area where bulls are expected to defend.
I recognize that the past few weeks of price action has been irksome in many respects. There have been quite a few individual opportunities, but that seems to have cooled off a bit this week. Keep in mind, trading is not akin to a college football season where the best go undefeated. Instead, the analogy is much closer to a baseball season, where even the very best teams lose at least forty games. You can expect things to get sloppy, even during uptrends. Being able to emotionally detach yourself from the greed and fear associated with money is one of the biggest challenges.
As repetitive as I have been about the concept or rising major moving averages in the indices trumping a marginal breach below them, it is precisely for moments like these when it seems like the market will inevitably go to hell in a hand basket. Bears are looking for a knock out blow, but in reality it is going to take much more work than a mere break below a rising 50-day moving average on any index chart. The topping process usually comes when the 50-day flattens out and serves as resistance, and then turns lower.
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VIX lower today.
If feels so weird after 4 years where this type of 2-3 day decline brings fear of crash Deja Vu.
But not anymore…I guess the collective wisdom is not afraid.