The iShares Russell 2000 ETF (IWM) seeks to track the investment results of an index composed of small-capitalization U.S. equities. Small-cap equities portend the direction of the market indexes in general, such as the DJIA and S&P 500.
The following chart of the IWM illustrates its 15-week EMA in relation to its 40-week EMA. If you are a long-term reader of my blog, you know the significance of this exponential moving average strategy (EMA). For those of you that are new, the EMA strategy is as follows: (1) 15-week EMA > 40-week EMA -- market trend is up (Bullish), and (2) 15-week EMA < 40-week EMA -- market trend is down (Bearish).
As you can see from the following IWM chart, the 15-week EMA exceeds the 40-week EMA. Therefore, yes, the bullish trend is still in place. However, both the 15-week EMA and 40-week EMA appear to be rolling over (flattening out), which could be a precursor of a change in trend from bullish to bearish. I will continue to monitor this ETF very closely.
The following chart of the IWM illustrates its 15-week EMA in relation to its 40-week EMA. If you are a long-term reader of my blog, you know the significance of this exponential moving average strategy (EMA). For those of you that are new, the EMA strategy is as follows: (1) 15-week EMA > 40-week EMA -- market trend is up (Bullish), and (2) 15-week EMA < 40-week EMA -- market trend is down (Bearish).
As you can see from the following IWM chart, the 15-week EMA exceeds the 40-week EMA. Therefore, yes, the bullish trend is still in place. However, both the 15-week EMA and 40-week EMA appear to be rolling over (flattening out), which could be a precursor of a change in trend from bullish to bearish. I will continue to monitor this ETF very closely.
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