A Key Make or Break Level For The Russell 2000 ETF

new etfsCorey Rosenbloom:  The Russell 2000 Small Cap Index has shown relative weakness to the S&P 500, but the index – and the iShares Russell 2000 Index (ETF) (NYSEARCA:IWM) – are at key pivot levels traders should know.

Let’s update our chart and note the bull/bear pivot point level for our trading plans:

The chart above shows the Russell 2000 Index on the Daily Chart with our key level highlighted.

In simplest terms, the 1,225 level is our key bull/bear pivot zone going forward.

Note the overlap of the falling 20 day EMA with the rising 200 day SMA (moving averages).

This is providing an upper wall of resistance for price; however, this does not mean buyers can’t break through the ceiling.

Thus we’ll reference 1,225 as our key pivot level where we’ll once again trade bearishly “down away from” this level but be prepared to trade a short-squeeze fueled breakout “up above” 1,225 toward 1,230.

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