IWM Rally Around the Corner?
Bullish divergence is spotted on the IWM/QQQ chart, IWM is being dragged down because of Fed hawkish comments and KRE underperformance. This is a weekly chart so we need time for this to play out, I remain bullish on IWM for the remainder of the year, even just 1% of inflows from QQQ into IWM could make it go up 10%.
Note
With the Quad witching behind us (the biggest one ever), we are now seeing this play out more, QQQ is taking a breather and IWM is up which is a reversal in the trend for now. Lets see if the QQQ bulls step in or if this rotation is for real this time.Note
We have 2 weeks of IWM out performing QQQ as you can see in the chart, it is a nice start but not a win. We have J Pow speaking tomorrow morning at 9:30am EST and Jobs report, this is going to be a major catalyst for the market, I am still bullish on IWM, it needs to close above 203.6 here soon.
Note
At the time of updating this, IWM is up 3.5% and QQQ is down almost 2%. Time to take a small victory lap.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.