Commentary

IWM – Slowly Doing the Right Things

Weekly

IWM has only rallied to the 52 week moving average, and has now spent 11 weeks or so consolidating mostly underneath it. The rising 13 week moving average is acting as support. It is quite bullish if it breaks out from here, with a reasonable target of 180. Not easy to take a position here, it seems likely it will retest 157 or so which would be a better price. The algorithm has been in the position for 4 weeks and lucky to be showing a profit. Longs don’t want to see the ascending triangle morph into a rectangle.

Daily

Pretty action along the 18 day and 54 day moving averages. The 18 day moving average acts as a conservative trend line for the February advance. That is decisively broken in early March and IWM recovers at the 54 day moving average and is now trying to ride the rising 18 day moving average again. Note that similarly to the weekly, the rate of change algorithm has been long for 5 days with a minuscule gain.

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