Although last week’s V-shaped rally made fools out of bears, the small caps in the Russell 2000 Index failed to adequately negate the “Three Black Crows” discussed and explained fully in this blog post.
Breaking and holding above $94 on the IWM ETF was key for bulls in negating the potentially very bearish pattern. But as you can see below on the updated daily that did not happen. We are now seeing aggressive, high volume selling away from the $94 level, once again.
At a minimum, the Black Crows, and the failure by bulls to negate them, indicates a corrective period is at hand, even if not a deep price pullback.
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I bot some $85 IWM puts, outta tha money for a hedge.
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