The current IWM Robot short position is developping nicely since the entry at 84.81 on May12.
Judging by the pre-market activity, IWM is now trading between Quarterly Pivot (81.80) and Weekly S1 (81.52), not very far above the probable 3-day target of 81.16. This target is still within an acceptable range of porosity allowance below the QPP and WS1 cluster, so this area remains a potential bounce attempt zone. But trade optimization rules tell us not to cover our short before a homonymous signal from the 20 DMF with long probabilities edges!
A neat bounce starting near WS1 would potentially create a bullish bias for the rest of the week, as WS1 + porosity typically marks weekly reversal lows. However, a failed bounce is almost certain to create a selloff to Weekly S2 (80.17) which would confirm an intensification of heavy selling bias. From there, Quarterly S1 (79.32) is likely to be hit fast because IWM has shown a strong pattern of leaping by Quarterly levels recently and I would not be surprised if Monthly S2 (79.52) just above QS1 was programmed as an end-of-month target in major algo and HFT strategies.
Billy
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