The 233. 35 rally target we’ve been using implies that IWM is about to break out of a wedge that has been building torque since January. Another inch would have done it last week, but buyers merely kissed the upper line without piercing it. Even if they should throttle back this week and IWM falls by ten points, it would not alter the target nor the pattern’s bullishness. But the rally will need to happen soon, since the sideways scuddle since August has pushed stochastic indicators to within spitting distance of the overbought zone. _______ UPDATE (Nov 1, 10:59 p.m.): It’s official! The chimps have swung back to ‘value stocks’, lazily recycling a tired old idea that has the fashion sizzle of a 1970s necktie. The breakout targets a minimum 236.80, based on the conservative pattern shown in this chart. If buyers blow past it, shift your sights to p2=240.72, or possibly even D=251.62. Both Hidden Pivots are derived from sliding the point ‘A’ low down to January’s 190.94 bottom. _______ UPDATE (Nov 4, 11:30): IWM topped less than one-tenth of a percent from my 240.72 target today, but because no one even mentioned it in the chat room, the symbol will be replaced by the vote-getting AAPL next week on the permanent list of touts.
IWM – Russell 2000 ETF (Last:238.50)