First resistance is the recent low of 1306. The daily 10MA of 1305 will also be strong support on any early Thursday declines - if we get them. In contrast, the bulls need to see a break over 1335 to confirm wave'C is underway - and break/close above the bull flag.
However, lets be clear, if we do somehow slip into the 1280s..this could get fast and dirty real quick - not least due to the Greek elections this weekend.
IWM, bearish outlook
SP' daily, 4month
Summary
Both the hourly and daily charts do display possible inverse H/S formations (not labelled), as well as a bullish flag - as comprised of the last 5 trading days.
From a MACD (blue bar histogram) cycle perspective, we are VERY high on the cycle, so the bears can claim we are due for a pullback. Although I'd consider these past few days of sideways chop, the pullback/consolidation that they have been looking for.
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Primary target remains sp'1350/60 for the peak of wave'2.
With the market facing more choppy action due to Quadruple witching this Friday, it now appears that wave'C of 2' - if that's what we have, will not be complete until the middle of next week - when the Federal Reserve is due to announce its latest action (or lack of).
So, an interesting day, I remain on the sidelines, waiting for wave'C to complete before shorting this nasty market.
A little more later...