Earlier today on Twitter, I pointed out the bear flag on $IWM (here). That said, I don’t yet have a lot of confidence that it will actually also break down, too. During this rally, so far as I could see, bullish sentiment only just began to try to creep back in to the market, and the volatility we’ve seen over last few days has basically washed most of that right back out again.
And, if sentiment is veering back to fear, I think it is less likely for a big, obvious bear flag like this to break down. And looking closely, the most local price action is forming a little inverse (I’ve drawn red cups under the head and shoulders of that). So, it’s possible for this to surprise to the upside into next week.
Likewise, the inverse I pointed out on Apple yesterday (here) is also looking tip-top so far. I cannot guarantee these will both break up, but they exist and I think there’s a decent chance they will work out.
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