Divergence Builds: $SPX Strong, $IWM Weak, $IGV Resilient
The market is grinding higher, but the internals are sending mixed signals.
While smart money remains steady—reducing the risk of a sharp selloff—rising retail confidence, gap-heavy price action, and divergences point toward a near-term consolidation rather than continued straight-line upside.
1. $S&P 500(.SPX)$
Dumb money confidence is strengthening while the SP500 continues to move higher, leaving behind gaps and indecisive candles.
The good news is that smart money remains stable; so a major decline (-5%) is not expected, though a healthy consolidation (-1% -2%) is possible.
2. $iShares Expanded Tech-Software Sector ETF(IGV)$
The Software ETF showed resilience this week, with a 1.7% gain.
The bounce from the 50DMA and a developing Stochastic crossover, looks promising for bullish continuation. $90 is the key resistance to watch.
3. $iShares Russell 2000 ETF(IWM)$
Indecisive price action, combined with a bearish RSI divergence and three open gaps, suggests a decline is possible this week.
The $270 level will likely act as a magnet, followed potentially by $265. A deeper correction beyond those levels is not currently expected.
😍 Been eyeing Tiger merch but short on Tiger Coins? Now's your chance.
🎁 We’ve selected 4 high-demand items across practial, lifestyle, and learning, now with a lower redemption threshold!
Hot Merch Returns · Up to 43% Off
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
