Blake Morrow’s Chart of The Day – August 4th 2021
“Why is this a big deal?”
With the S&P 500 almost at all time highs once again, we have to acknowledge the underperformance of this index. We are under the assumption that the SPX will hit new ATH and push towards 4440 then 4495 in the coming days. What this should allow for is a move in the IWM above the 61.8% retracement at the 224.44 level and 50dma back to the “range highs” at 234. If you want to be long, you know your breakout point and if you want to be short the index, maybe the best risk/reward for a range trade is back at the upper end of the range for a short!