iShares Russell 2000 (NYSE: IWM) Breaks
Support Says Market Timer Frank Kollar
October 29, 2009 (FinancialWire) (By Frank Kollar)
Shares of iShares Russell 2000 Index Fund (NYSE: IWM)
have broken below several support levels.
On Tuesday, October 27 iShares Russell 2000 broke below
its 50-day moving average. This is the first time shares
have closed below this average since early July. In July,
the break below was followed by a rally to new highs.
On Wednesday, October 28, iShares Russell 2000 closed
below its most recent correction lows closing at $56.81.
Those prior lows were at $58.00 on October 2.
These breaks of short-term support levels point to a test
of the 50% retracement support for the July to October
advance. This support level is at $55.00 a share. A close
below $55.00 would point to a test of the 61.8% support
level at $53.16.
Should shares manage to close below $53.16, we will be
looking for declines to reach all the way down to the July
correction lows at $47.27 a share.
iShares Russell 2000 has had numerous bouts of selling
in its March to October advance. All have been short-lived.
If any of these support levels holds, there could be a
rally and new test of the October highs. But until there
is a bullish reversal in iShares Russell 2000, the likely
path is to lower lows.
The Fibtimer.com (http://www.fibtimer.com)
ETF Timing Strategy holds a position in iShares Russell
2000.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com)
which offers market timing strategies for S&P and
Nasdaq index fund traders, as well as bond, gold, small
cap, sector, ETF and stock trading strategies.
Kollar’s research has shown
that the financial markets are in tradable trends approximately
80 percent of the time. FibTimer strategies define trends
and trade them in both advancing and declining markets.
Caring nothing about what newscasters say or what the
latest economic indicator predicts, trends are where
the profits are, and that is where FibTimer is.
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