Small caps (IWM) are precarious
There is an old saying among the men who stare at charts…
“The more times a support level is tested the weaker it becomes.”
Okay, men who stare at charts. Let’s see if your saying is right. IWM has banged support no less than six times and is doing it again. To boot, the price is below the moving averages, which seem to be rolling over. This after failing to break above them at the red arrow.
It looks almost too obvious as I stare at the chart and realize how poor my temperament is when I short something and it goes against me. That is one of my few psychological vulnerabilities with respect to the market.
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