I put out a post this morning for Pivot Analytics showing that IWM could bounce today.

This is on the backdrop of a post last night that showed Energy is into critical levels here. The 100 week moving average is a big deal, and has been in the past.

The gist is that if the trend long term has flipped bullish, we should defend these key levels. The whole objective is to find tight:risk reward ideas. XLE should benefit from a world that is normalized but this trade has been faded sharply since delta variant starting creeping into the headlines.

If we start to see a rollover in cases, energy should do well. The risk reward is sound and the technicals look good. I will share one chart that I put out for Pivot Analytics this week, its SLB. You have a clean TD Combo here into the 100 week moving average. It has worked well before.

Now, if energy starts to hold, this will be a massive positive backdrop for IWM. Small-caps have been range bound for almost 9 months now and we are against retesting the bottom end of that range. I see if we trade above 220 one more time, its not going back down to 200 until the next big “crisis”.

As always, I try to send out notes like this countless times per day on our main research platform. We offer a chat, real 1:1 access and a full featured community. You also get reports and ideas sent to your email + iOS/Android devices via our app. Check out www.pivotanalytic.com.