In doing some work at night on Monday night, I noted that the retracement on IWM from the October 2014 low to the recent high spoke very loudly to me.
The 100% retracement on IWM for this time is $103.54 and Monday IWM closed at $103.40. Well, we puked that level with today’s action.
However, it is notable that Tuesday IWM closed at $103.71. Wednesday’s intraday high was $104.42.
Today we are well back below that level at $100 at 3:03 p.m. EST.
So $103.54 is not far away. That said there is another retracement I am now following which is the November 2012 low to the June 2015 high. The retracement levels on that time are 38.2% at $108.13, 50% at $101.57 and 61.80% at $95.01. Let’s see if we can clear the $101.57 level first then get back above $103.54. These are tough times but my gut says we are closer to a near term low than going over the cliff.Twitter