Mike, this is an extensive question requiring an extensive answer that I will try to provide later.

But you have many misconceptions. Here are some preliminary remarks:

-IWM is EXACTLY made up and weighted like the +/- 2,000 stocks of RUT, just like QQQ is for the 100 Nasdaq stocks or SPY for the SP-500. You can find all IWM holdings here: http://us.ishares.com/product_info/f...erview/IWM.htm

- Most Small cap stocks are not liquid enough to provide multi-pivots confluences reliability. Market makers use other techniques for their inventory management. So, the individual stocks pivots are independent of IWM's pivots.

- The aggregate multi-pivots on an index (IWM, SPY, QQQ, DIA) reflect exactly the " aggregate" market" equilibriums, supports, resistances and imbalances. Index (and ETF) traders play the market and don't care about individual components so much. Historically, the majority of the stocks will be extended into IWM's resistances and pressured into IWM's supports. So, it is more the individual stocks that are adapting to IWM's floor levels than the reverse. Each stock will tend on average to react to IWM's floor levels according to its own volatility and relative strength.

I will continue later,

Billy