Thus far, the iShares Russell 2000 Small-Cap ETF (AMEX: IWM, Bullboard) has retraced 62% of its prior upmove from 68.16 to 72.27, and although the intensity of the sell-off is pressing the hourly RSI into oversold territory, my sense from the way the pattern is unfolding is that the IWM will test the March–April support line, now in the vicinity of 69.40/35 – prior to my expectation of a potent upside pivot reversal that initiates a new upleg.
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