IWM Chart – Back to Resistance

I charted IWM on August 25, 2009 just before 11 am when it was trading at $58.43.  Just as the past two days of trading found resistance, so has today.  The line that keeps holding back the Russell 2000 ETF is the line of higher highs.  I can’t make myself buy into this market when it’s at the high end of its trading range, even if it stands a chance of staying up there for a while. 

I think a better move is to wait for IWM to move back towards its lower trend lines of higher lows, closer to its 50 day moving average.  The potential for a reversion to the mean with the 200 day moving average is always possible which is just one more reason to hold off on opening a full position right now on IWM.