Watching for IWM to bounce off support
IWM is currently in a strong accumulation area based on the volume profile delta. The indexes were a bit oversold after yesterday's CPI report and FOMC minutes, leading to a bounce in the afternoon. I am skeptical as to whether today's PPI report and fed speakers will have the same effect so I closed my puts. Here is my reasoning:
VIX keeps rejecting above $16.25. If it does not move up sharply at market open, I expect it to reject again and move back down towards $13.00.
The 10y bonds chart looks like yields have topped out for the week after hitting the R3 fib pivot point. I see it retracing down the channel until next week.
Same situation with the Dollar.
I expect a small rally into the weekend or early next week. Timing will depend on the reaction to today's PPI report. I'd like to see a dip in the morning so I can minimize risk in case there is not enough momentum to get to $206. I expect some choppiness there so we can either continue moving up next week or head for new lows.
Also thinking this looks like another bullish wedge on NYSE..