The Russell 2000 index fund IWM has broken down once again after a lot of traders got excited with the strong move up last week. It was a massive headfake that burned a lot of traders. So wicked. So evil.

Russell 2000 Index Fund

Russell 2000 Index Fund

That headfake is just wrong on so many levels. This is the kind of market action that’s pushing traders into bitcoin and markets that are not dominated by HFT, algos, and quant trading desks.

Many traders were thinking that after the downtrend channel breakout and then the convincing break above $139.50 resistance, that perhaps a trend change was at hand on the Russell 2000 index fund. Institutional traders basically told amateur traders no such luck suckers. Now let’s see if the $136 downtrend channel line holds.