Yesterday I took a look at the break to a new minor high in the tech-heavy QQQ ETF and mapped out three possible scenarios for price as we go forward. Earlier today I looked at both the SPY and IWM (small-cap stocks) ETFs … small caps are actually breaking out of their consolidation pattern and late on Monday, price on the 195-min chart flipped from yellow/contraction warning candles and signaled the beginning of a new trend expansion phase. The SPY chart is the index that I like to follow the closest to track what the “overall” market is doing, and it is lagging the QQQ and IWM – we are still below the prior minor pivot high, and we are still in a trend strength contraction zone. Here are the 195-min charts …
IWM – 195 Minute Chart
Bottom Line … small caps will be important to watch, but the SPY is the one that matters most I believe.
Cheers … Leaf_West