IWM Ready to Roll...

IWM has had a great run from 2009 low and now looks ripe for a technical breakdown. Looking at the setup today it is very reminiscent of 2011 when the IWM corrected over 10%. Looking at where the RSI and MACD currently sits some might believe they need a bounce to gain momentum to downside, but there is strong divergence in MACD and RSI sits at the same levels from 2011 when it sold off 13%+ before becoming oversold and rebounding. A measured move form today's levels will put the IWM on the long term trend line perfectly.

The IWM breakdown will set up the overall sell off in the markets that I think is coming to the 1650 level in the S&P500, as capitalization-weighted and price-weighted indices have kept the markets at all time highs while the internals deteriorate.