IWM is getting closer to the bottom or right side of its pink rising megaphone and that means we’re likely closing in on the dip or correction we’ve been waiting for.
IWM could put in a swoosh to its little light blue megaphone bottom any time, then put in a triangle right shoulder for a head and shoulders top before a breakout from the pink rising megaphone to at least its bottom near the red megaphone VWAP.
IWM has been turning neatly at its big red megaphone top. It could still break through that top in the purple scenario, which would greatly raise the odds of a trip to the red megaphone bottom.
The green scenario, which is a Sornette bubble set-up, is a set-up for a melt-up to close to 200. The light blue scenario, a Sornette set-up failure, would set up a crash to roughly 60. The purple and orange scenarios could keep IWM in the red megaphone for a very long time.
Neely is looking for a crash or blow-off top before a crash.