Sir Fully,
Your gap identification was spot on.
I think now the first gap in IWM is about to be filled, and then some.

More importantly, what does it imply for the “time factor” on the chart, if and when the second gap gets filled?
Meaning, after the second gap gets filled, does the bearish trend resume, or is filling of the gaps an indication of a more measured, slower resumption of “healing of price” on the chart?

As many have noted here, the Russell is composed of the broadest sample (next only to Wilshire 5000) of publicly traded companies. Regional banks, media houses (now Warner has joined in the severe downtrend in PARA and DISH), small to medium sized retailers … all have weightage in Russell, and all are sectors with significant weakness lately, and in the foreseeable couple of quarters at least. Businesses that rely on funding via low priced debt/notes, can’t see any light at the end of the tunnel. They will continue to project lower growth, and focus on cutting costs/workforce/projects as they continue to pay a higher percentage of their generated revenue in interest payments, eventually going from green to red in their bottomline. As I understand, having a mortgage gives the luxury of long term locking of prevailing interest rates, as (good) borrowers are low risk. That simple advantage is not available to businesses, which are risky by definition and continue to refinance with 1, 2, 3 or a maximum of 5 years terms.

Trying to understand more about the SPY (relative strength) versus IWM (relative weakness) divergence … beyond the impact of the magnificent 7.

Thanks in advance to all that reply here.

GL