For all of the nasty pop and fades we have seen this week, the small caps in the IWM (ETF for the Russell 2000 Index) have not even fully closed the obvious gap traders had been observing. Below, the updated 30-minute timeframe indicates the consummate stalemate this week. However, given the steep rally the prior two weeks, this type of shallow giveback is promising for bulls headed into next week.
Sooner or later, though, the initiative needs to be taken with an actual breakout. For now, we are left hanging in the balance as this week winds down.
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