The iShares Small Cap Index ETF($IJS)is trading at new 2018 lows today. Yesterday the index suffered its biggest loss of the year(-4.5%)but was still able to hold above a major support zone. This key area is beginning to give way today.
At this morning’s low the $IJS had stretched the drop from the 2018 highs to 18%. Since the Oct. 10th break below the 200 day moving average the index is off 12%.
There is very little support in place below the $143.00 area. In addition, the index is far from oversold in the short term(daily MACD). More downside is likely ahead before a rebound can develop.
At time of publication we do not have a position in the $IJS.