Tuesday, May 25, 2010

IWM - Fib Price and Time Cluster

IWM has the MOST fibonacci price confluence around the 55 and 66 levels. Since we are currently trading below 66 and are most likely headed down, the next solid support would probably be found around 55 levels.

Time wise, the next major Time cluster confluence is on June 7th. It is possible that the current downtrend ends on that day around 55 or that it ends around 66.

Our Fib Price/Time clusters just gives the major confluence areas. Direction is something you need to figure out yourself. IMHO, 55 looks extremely odd at this time within about 10 trading days, so is 66 as well. Let's see how it shapes up.

Short IWM.

Good luck.
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