Friday, March 20, 2015

Russell 2000 breaking out of 15-month consolidation

Here is the chart of IWM, the ETF that tracks the Russell 2000 index:

Is this the start of yet another uptrend in this 6-year bull market? I know many investors and traders will be in disbelief. I also have some difficulty accepting the incredible run of the stock market since the March 2009 low.

But a breakout is what the chart says.

I'll be looking at other indexes to see whether they follow the Russell 2000 and confirm the breakout.
Remember: if you don't believe in this breakout, then you don't have to trade it or invest in it. But don't go all in short because the market is doing what it is not supposed to do. Price is king, queen, and final.

Try to believe what you see, not what is supposed to happen.

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