IWM has severe technical damage and a negative weekly cycle; short-term bounce expected for ~2 days but medium-term view is slightly bearish until structural repair occurs.

This is the Russell indicator on the weekly timeframe. It has suffered far greater technical damage than the S&P or Nasdaq indices. Oh, the cycle structure has turned negative.

You can see that we broke the cycle support level a few weeks ago, and that would have represented a sharp reversal to the left, and it is now taking a negative and declining shape.

Well, you can see that we are approaching some key support levels below the market. This is an area where we can look for a response, but at this stage, a bounce off support levels does not mean a fix for the weekly structure.

We need to see the price start to recover resistance and the weekly momentum picture improve before we can consider the damage repaired.

The daily chart gives us a similar distinction between the day's bounce and that larger weekly structure. The Russell index rose sharply this morning as Treasury yields initially fell.

It still retains some of that gain, despite falling back from its previous peak as bond yields have begun to rise again.

Even with today's rise, the major technical damage has not been repaired . We have a price that is well below the 89-day moving average. We have negative momentum with both the "Reversal Scout" and "Slim Ribbon" indicators.

You can see that we are getting a bounce that was perfectly in line with this asynchronous daily cycle here, but this larger cycle is a reversal to the left and has peaked here and is in a negative formation.

We expect this rebound to continue for perhaps another two days and then eventually fall back towards this time window. The ideal timing window for this daily cycle is from 8/10 to 15/10.

The S &P 500 remains technically constructive, but beneath these indicators, we have seen a much more significant deterioration in the Russell and Dow indices.

The Russell index remains slightly bearish in the medium term and only neutral in the short term. Once again, we saw that bounce back today, and that was enough to push it to a slightly higher level in the near term.