iShares Russell 2000 ETF (IWM) Chart – 4/14/09

I charted iShares Trust Russell 2000 Index Fund (IWM) after market close on April 14, 2009 when IWM closed at $45.31.  IWM attempts to mimic the performance of the Russell 2000 index.

• IWM held support at its 10 day moving average today
• IWM hit resistance at the trend line of previous lower highs
• IWM hit resistance at the trend line of the highs of late January and early February
• IWM is still trading within an old horizontal trading channel that tracks back to November 2008 and a shorter rising trend line higher lows and higher highs
• The Williams %R indicator for the 14 day period broke below overbought, but hasn’t yet on the 28 day indicator

Opinion =IWM is at a tipping point.  The battle between the shorter rising trading channel and the longer horizontal trading channel will be decided within a couple of days.  A telling indicator for which trading channel wins could be found in the Williams %R indicator.  If IWM has another down day on Wednesday the 10 day moving average could break and the trend line of higher lows could break.  If Williams %R continues to lose momentum IWM could be in for a retreat back down to the $40 range, if not lower.