After gapping down, IWM traded mostly sideways around yesterday’s Daily S1 (80.21) where it closed the day, right under the key Quarterly pivot (80.28). A secondary short entry is advised today at the same limit price of 80.03 as the initial robot’s entry.
If yesterday’s floor clusters were pretty neutral, today’s outlook is more bearish with a total strength resistance of 20 (11 + 9) vs. a total strength support of 10 (8 + 2). Options holders’ maximal pain for opex tomorrow is at 82 so we must be wary of attempts by market makers to close the week near that level. Hence, the bias is bullish for opex and we may need to wait until next week to reap the rewards of our patience if not stopped out at 81.63 and in the absence of the cash or buy signals discussed by Pascal in his “comment of the day” article.
The Precious Metals Money Flow was weak all day, crossing below the porosity level and below its average 40 minutes before the closing bell. Then, 20 minutes later, one of the strongest up thrust ever witnessed since tracking the indicator saved the day and the GDX robot position closing with a positive MF for the day! We’ll see if this was “smart” money buying near the close. This looks like market makers loading inventories in individual stocks below the day’s VWAP which would mean that they see institutional buying coming in above Monthly S1 (46.27) . All we need to know for sure is that the EOD robot is holding its long position and is still protected by a daily close of the MF below the porosity tolerance (-0.145% today). There is no secondary entry advised for today. The RT model is still short but just 0.025% away from a buy signal at +0.145%).
The floor clusters outlook is as bullish as can be with a 31:8 total strength ratio to the bulls advantage.
Billy
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