What happened: IYR pushed higher, DRV hit the stop.
What didn’t happen: IYR’s action higher, failed.
The hourly chart shows IYR pushing above the 92.50 level previously discussed.
Expectation was for a measured move higher … about 2 – 3 points.
As soon as price action penetrated the stop area, it reversed.
Shown above, is the re-entry (DRV) when IYR action posted an outside down hourly bar.
The chart below has more detail which indicates successive market rejections as price attempts to move higher
There are no guarantees. Some kind of demand could come in to move IYR higher.
However, based on the failed attempts to do so thus far, the market’s saying we’ve seen the highs for this cycle.