Here is an update of the 30-minute IWM chart we looked at yesterday, which is the ETF for the small caps in the Russell 2000 Index. Despite yesterday’s ramp higher, we had yet another lower high and the head and shoulders topping pattern (purple lines, pattern only on this timeframe) is still in play, with the neckline highlighted in light blue.
Overall, the action is rather quiet and indicative of a pause in front of The Fed tomorrow, not to mention typical dog days of summer doldrums.
I am still holding Home Depot short inside 12631 and playing for another leg down. Stop-loss: Above $82, but I may cover sooner if I see strength above the 20-day moving average.
__________________________________________
thx Chesster