It’s just after 11:00 a.m. EST; typically the time markets end their counter-trend action and reverse.
Yesterday saw the firm’s exit of DRV positions in anticipation of higher action (lower in DRV). That’s what we’re getting now; except IYR is hitting and testing the underside of established resistance.
The DRV positions have been re-opened; not advice, not a recommendation.
If this test is going to hold and IYR reverses lower from here, look for price action to stall during the day or even now, just after 11:00a.m. EST.
Well traded inverse funds for IYR, are SRS (2X inverse) and DRV (3X inverse).
Recall that conditions are in place for a general market top and reversal; bonds, dollar have already reversed higher. Gold (inflation proxy) is continuing lower.
The entire setup along with the insane unemployment claims from this morning, suggest when the market heads lower, the move will stun even those who are ready on the short-side.
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