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Russell 2000 (TWOK ETF): Critical Test for Bulls?
​October 27 2016 ( From TradingView )
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The Russel 2000 Index (TWOK ETF) is at Technical Croosroads ​to ​say the
least. Few of us realize that the TWOK ETF Breakout happened earlier
​than the SPY ETF (on May 24 2016 to be precise) compare to July 8 2016
​for the SP500 Index (SPY ETF). 
(See First Chart Below - Red Trendline - Ellipse)​

​​Here is some Technical Observations:​​​
​1) TWOK ETF is now at 27.1% (unadjusted for dividends) from its bottom
​reached on February 11 2016
​and SP500 (SPY ETF) is at only 18.0%​​​​.

​​2) TWOK ETF from highest peak price (reached on June 23 2015) to the
​lowest ​price yet (reached on ​February 11 2016) was 27.2% and only 15.2% for ​the Mighty SP500 (SPY ETF). ​​​​

3) TWOK ETF is far from making a new high as it is trading 7.5% below its previous peak price reached on June 23 2015 at 76.48. Closing price as of October 26 was 70.77.
​​

TWOK ETF had its first Breakout mode on May 24 2016 as it went over a Major Resistance Trendline that started since June 23 2015. (See First Chart Below - RedTrendline - Ellipse) 

It ​is now testing the Support Trendline from a steep Rising Wedge so Critical for Bulls to protect at all costs. ​(See First Chart Below - Blue Trendlines - Ellipse).
It is more obvious to see the steep Rising Wedge critical support from a Weekly Chart. 
​​(See Second Chart Below - Grey Trendline).


​​​​​So the TWOK ETF under performed tremendously lately the Mighty SP500 Index (SP ETF) on a relative basis (ratio of TWOK over SPY) since peaking on September 23 2016 and is is still within a Daily Downtrend Channel.

​​But the real interesting part is that it is that at a time were the TWOK ETF is testing price wise its support trendline, it is still far from testing its support trendline on a relative basis. ​(See Third Chart Below - Red Trendline).
​ 
Also quite crucial to observe is that the Relative Volatility (Russell 2000 RVX to SP500 Index VIX daily ratio)
already rising tremendously and reflecting some behavior change from market participants. The real battle is on between the high liquidity SP500 and the lower liquidity Russell 2000. The Relative Volatility (based on the 200 DMA (Day Moving Average) is at its highest level since May 2015! 
(See Fourth Chart Below - Blue Line)
​​

Russell 2000 (TWOK ETF): Critical Test for Bulls?  $SPY, $IWM  #Trading #russell2000 #SP500
Daily RATIO
TWOK ETF vs SPY ETF ( Candles )
​​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​​


Financialiceberg.Com
TWOK ETF
Weekly Candles​ - Right Scale
​4 WMA ( Yellow Line )
​12 WMA( Red Line )
52 WMA ( Green Line )

Financialiceberg.Com
Financialiceberg.Com
TWOK ETF
Daily Candles​ - Right Scale
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )
200 DMA ( Green Line )


Daily RATIO
Russell 2000 Volatility (RVX) vs SP500 Volatility (VIX) ( Blue Line )
​​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​

Financialiceberg.Com