Amazing that the centerline that I wrote about many times over the past month has once again been respected. Notice on the right side in the IWM 15 minute chart below, how today’s price dropped over almost 3% from yesterday’s high ($75.29) to a low of $73.13 today, and then aggressively bounced from there almost1.5% to its’ current price of 74.39.
Whether price will continue to hold above this line, only time will tell, but the aggressive repelling nature of the line continues to hold true. I would assume in order to break below the line, we would need to do it in an after hours gap.
If the price holds above the line today, it will be a strong (short term) victory for the bulls and signal a retest of the highs we had over the past two days (high $75’s), but I wouldn’t be surprised to see more downside to come (see my previous blog posts for more on this).