IYR made an unexpected print high; then failed to hold into the close.
The inverted chart of IYR puts it all in perspective.
It’s obvious we’re working the area of IYR, where medium to long term reversal is possible. The inverted chart shows how each successive thrust lower (blue lines) covered less net distance.
Instead of exiting out of DRV, then getting back in, the position was held with the expectation new IYR, print highs would not hold.
Not only that, there was plenty of intra-day kabuki:
Early session lower, then reversal to new highs, then fail and lower close. Anything can happen but IYR’s upward action looks exhausted.
If IYR had maintained its new high into the close, DRV would have exited (not advice, not a recommendation).
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