Early morning buyers have been trapped by a severe reversal from daily R2 (78.84). The first target WPP (77.63) is now marking the low area of the morning session. A weak rebound to MR2 (78.05) is possible during lunch hours. 78.05 is the crucial multi-pivot risk-reward threshold where a new short limit entry tomorrow will vary between 77.93 (close < 78.05) and 79.85 (close => 78.05).
Intraday VWAP now declining at 78.35, enough to temper buying appetite for the rest of the day. A retest of VWAP may mark the high area this afternoon.
This morning low (77.55) was right on the 5-day VWAP (77.55) and (65,5, 30 minutes) volatility stop (77.53). But I deem that MR2 was the most important support to break. A breach of the 5-day VWAP and of the volatility stop seems quite realistic today or tomorrow for a test of WS1 (76.75) before a second target of MR1 (75.90) and 200dma (75.81).
RT 20 DMF (second chart below) has currently a negative bottom divergence with IWM, so large players are in no hurry to buy at weekly pivot (77.63).
Billy
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