There is a strong level of resistance forming overhead on the Russell (IWM). On the RUT it is at the 1212-13 level and on IWM it needs to push through the $120’s.
On numerous occasions IWM has tested this resistance level and has quickly retracted in price – often times to the tune of 7-10%. Obviously, the same kind of sell-off wouldn’t be seen across other indices, but it is very possible with the Russell right here. My target price would be around the $112-113 level for support off of the rising trend-line from the February lows.
If resistance is broken, I expect it to quickly convert to support as it did on the weekly chart below from February to August of last year.
