Friday, June 10, 2011

IWM developing head and shoulders top

IWM seems to be in the process of developing a head and shoulders top. The left shoulder and the head are complete, and today should be the bottom between head and right shoulder.  The neckline is just below 78, with a slight upward slant.  Volume has been low on the rallies leading up to the left shoulder and head peaks, and high on the selloffs leading down to the troughs.

The next move should be a low-volume rally to about 83, peaking at the end of June or in early July.

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