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April 16th, 2020: XLF and IWM 60-min Charts

Posted by pugsma on April 16, 2020

4:40 pm EST:  Sometime charting other indices that are not performing as well is worth a look.  Both the Financials (XLF) and Small Caps (IWM) have been lagging far behind the SP-500.  In both cases, it looks like they are forming a potential bullish Leading Diagonal (LD is where wave 4 overlaps wave 1) that is just now completing their respective 4th waves of and 5-wave impulse higher.  This would mean another big push up for both XLF and IWM to new recovery highs above 23.66 and 124.61, respectively.  This would likewise the mean that SP500 is also in a minor 4 (triangle) and would push up well beyond the 2852 recovery high during the minor 5 wave.

XLF 60-min chart:

IWM Technical Analysis

IWM 60-min chart:

IWM Technical Analysis

15 Responses to “April 16th, 2020: XLF and IWM 60-min Charts”

  1. pugsma said

    IWM is up from 116.91 to 124.50 (+6%) after hours.

    I guess I was on to something with my IWM and XLF chart observations in the cash market final hour. $$$

  2. doubleug said

    Hi Steve, I hope you don’t mind all my questions lately. With these lockdowns, I have a ton more free time to learn EWT. My observation is that Minor 3 is longer than Minor 1 in your count. So, this would be considered an “expanding” leading diagonal, as opposed to the contracting variety. Would it then be correct that Minor 5 would be expected to be longer than Minor 3? In other words, your 136.57 price target would actually be the LD minimum, not the max?

  3. MarcoMan said

    Why is the 4 overlap of 1 OK on both of these charts? Why is it not a 1, 2, and a (1), (2)?

  4. rat8nine said

    iwm 60 as of the close of the cash market Thursday: Steve, I just noticed that wave 3 was exactly the length of wave 1… the penny….I don’t think I have ever seen this before. What do you make of that, if anything?

  5. doubleug said

    QQQ and SPX have met their minimum requirements for Minor 5 of Major 1. IWM’s count could easily be changed to show a Major 1 high at 124.88. If that’s the case, it’s currently leading the markets down. I’m not willing to chase that extra 3% in IWM with a lack of broader market participation. Could be wrong Monday/Tuesday. But happy to be on the sidelines to find out.

  6. doubleug said

    If IWM has been in its Major [2] since the 124.88 high, would you already consider its Minor A (114.56) and Minor B (122.72) legs complete?

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