Well, this is the 5th day in a row that iShares Russell 2000 Index (ARCA:IWM) has given us a black candle (that is, a closing price lower than the open). It’s not scientific, but I took a hard look at the IWM for the past two years, and I don’t think I found any other instance of this happening. It’s nice to get some consistency to the downside (although the percentage move isn’t that huge yet).
Although arguments could be made for things being “oversold” right now – particularly with respect to miners, as my last post mentioned – I think we’ve got a good shot at challenging the ~1740 value on the S&P 500 made early in February (pretty sad that the most ambitious we can get is “as low as” 1740, isn’t it?) Still, that’s an interesting opportunity.
I’m seeing ample topping patterns, with Universal Health Services Inc. (NYSE:UHS) being a fitting example: