The DJI is up 150 points today while IWM is down 1.0%, equivalent to about 350 Dow points. That's a 500 point Dow/IWM discrepancy. A the same time, IWM is turning down from inside a Fib reversal window in a five wave EW pattern. Despite strength in the DOW (and Nasdaq), IWM is suggesting all is not well. If you are frustrated that the market hasn't followed through on the initial January weakness, than join the crowd, but don't give up the bear narrative. So far, all of this retracement nonsense is normal for reactive waves, just before the next leg in the dominant trend asserts itself. Today, tomorrow, Friday, in the end it won't matter. If this lasts into next week, we will look at rolling into March index puts. For now, let this chart be your guide and under the right circumstances, be prepared to add to short positions. I'll tell you when. IWM Intermediate Term EW Trend
