Election Square-out on IWM, the Truth-Teller

Three weeks ago, IWM broke out of a trendline connecting its January/February pattern high to its summer highs.

However, as we know, not all breakouts are created equal.

Allow me to explain.

From its March 95.69 low to 164 represents a 540 degree advance.

540 degrees is a true square, a cube.

Why?

Because a cube has 6 sides of 90 degree angles.

Red is 96
Blue is 164
Green is 3rd week in March (the IWM low).

So the low price of 96 squares the time of the low in March for a time/price square-out.

As well then 164 squares the March low for a possible time/price square-out.

If IWM should continue higher, there is a possible time price square-out at 170 on November 1.

170 (red) aligns with November 1 (green)

Green is Nov 1
Red is 170-171
Blue is 158

However, if IWM reverses back through the breakout point near 160 and follows through below 158, it will trigger a Triangle Pendulum sell signal.

These are powerful patterns that oftentimes lead to fast moves.

False breakouts can elicit sharp declines.

On the above sq of 9, notice that 158 is square November 1, just two days before the election.

The takeaway is if IWM strikes either the 170 region or 158 around election day, it will be an important setup.