Judging by the pre-market activity, IWM may gap down today just under QS1 (79.32). For my expectation from yesterday’s debriefing to prove correct, we should see a quick bounce above QS1 (79.32) and WS1 (79.43) and a gap fill before an easy assault of the first weak resistance cluster.
After five days of decline, institutional buy orders to execute “at best” in the next few days must have piled in and waiting inside market makers books. A fast spooky shake-out move to fish for the latest stops often precedes the start of a new buying wave. If we see no up-reversal and down-gap fill within 1 hour after the opening, then my scenario will likely be wrong and a proof that no large players are really interested to buy and they prefer to wait for a test of the rising 200-day moving average (76.55). However a first support strength of 13 vs. a first resistance strength of 4 within 1 ATR range offers all necessary and favorable conditions for a reversal and bounce. Note that both SPY and QQQ do offer the same kind of opportunity today and the move could become powerful.
GDX is still stuck within two clusters of equal strength and hints at no clear directional move today besides a continuation of its current bearish bias.
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