Sunday, November 23, 2014

RUT Russell 2000 Small Caps Daily Chart

The RUT small caps continue to lag the broader market. The SPX, INDU, TRAN and AAPL make new all-tiem highs day after day but the Russell 2000 can not yet overtake the July high. The Nasdaq is printing new 14-1/2 year highs each day. The small caps should be leading not lagging. Price is at an important do-it-or-die juncture. If price moves above the green line at 1187, the RUT will move up to test the record high at 1213. If the bears can hold 1187 R, the price should begin falling in earnest.

Note the gap fill from early July was taken care of eight trading days ago so there is no further reason for price to move higher, there are no other upside gaps to fill, but on the downside there are a couple of juicy gaps that serve as targets. The chart is staggering sideways and not hinting at direction. The moving averages are lining out sideways. RSI is above 50% in bull territory but the stochastics are under 50% in bear territory. Simply watch the 1187 level. Market bulls rejoice above 1187. Bears will dance with joy if price stays under 1187. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 7:18 AM on Tuesday, 11/25/14: The RUT closes smack-dab at 1187 so a critical bounce or die decision is on tap for today. RUT will either pivot higher or pivot lower from 1187 identifying the market winner going forward.

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