Recent price action now provides a tight range for downside targets.

Recall, that P&F charts show potential, not guarantees.

There’s enough congestion in IYR to build significant downside objectives. If we’re at a sustained reversal, then as IYR passes through the 78 – 82 area, it builds even more downside potential.

This is why there’s been so much focus on IYR.

Thinking of it in Elliott Wave terms, if we’re about to begin a Wave 3 (down), it can’t be shorter than Wave 1

That wave (100.75 to 56.27) collapsed a whopping – 44% .

As always, anything can happen. IYR is trading down but right at support. It could get a new lease on life … but probabilities say no.

Charts by StockCharts

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