Forum Clusters 110720.xlsx
The thriller movie is progressing into the bear trap scenario which unfortunately shook the IWM robot out of its long position on Monday’s lows. It’s part of the risk-management game. After missing the best rally day of 2011, the robot is once again looking to enter a new long position at $ 83.06, which was also the exact most frequent limit entry price recently. What’s encouraging is that the 20 DMF refused to turn short after still being one hair away from a sell signal around noon yesterday, and the first serious buy programs in a week finally triggered around 1:30 pm as detected by the cumulative $TICK.
As far as today’s setup is concerned, IWM is simply back in the trading range that held from Monday till Thursday of last week, above the strongest of all support clusters. The fact that it escaped a nasty selloff under the support cluster and bounced back fast and strong yesterday can suggest the resuming of the uptrend as bears and short sellers have been painfully shaken out and disgusted for a while. Just like last week, the easy target is YR1 (85.68).
QQQ is the leading ETF and is already trading above its own YR1 (59.02) pre-market. The easy floor progression is over as it is entering an extremely strong resistance cluster with strength of 27. The ability of QQQ to progress by small leaps and bounces above SR1 and QR1 (59.72) without a serious pullback over the next few hours and days will tell us a lot about the true potential sustainability of the rally for the overall market.
GDX is looking poised to test its first support cluster before a new assault at the SR1 and QR1 (62.12) levels. Ideally, it should allow new entries at 58.92 and quickly regain its 5-day moving average (59.74 and rising) for an easy continuation of the rally.
Billy
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