Next Week's IWM, 21 Day Pivot Standard Deviation Range

Looks like the medium term bias is to the downside for small caps, as we see the weekly pivot (red solid line) fall below the monthly pivot (dark solid line) with IWM closing below both.

Both deviation boxes represent two standard deviations above and below the a moving monthly pivot. We may see demand in the lower deviation range if we fall to start off the week.

A rally to start of the week will likely be met with resistance from our pivot points and a fresh downward move from the 21 day moving average.

Investors that want to take advantage of this medium term bias could short volatility in the short term (June/July) for IWM using TZA but bet bigger on long volatility in the longer term (September/January2025).

Take any short term gains to the upside and hold onto your short thesis heading into the second half of the year, into 2025.