Every time I think the market can’t possibly correct, I look at the long-term IWM chart.
Not only do the 3-year+ red megaphone and blue rising megaphone require a retrace to at least the red megaphone VWAP at roughly 113, but IWM continues to tag its red megaphone top and back away from it.
The market lacks the enthusiasm to even break IWM out of the red megaphone for a topping pattern on top.
IWM could also correct all the way to the red megaphone bottom (purple scenario). The purple scenario becomes the favorite if IWM breaks through the red megaphone top to put a big head and shoulders pattern on top.