Monday, January 23, 2017

RUT Russell 2000 Small Caps Daily Chart; Battle for the 50-Day MA

The Russell 2000 small caps (RUT) and the Dow Jones Industrials (INDU or DJI) have both lost their 20-day MA's. The S&P 500 (SPX) is testing its 20-day MA at 2265 and whoopsies daisies, the SPX falls through to 2262 as this is typed. The Nasdaq Composite (COMPQ) remains well above its 20-day MA.

The RUT is making a bounce or die decision at the 1346 and will likely take the broad indexes with it. Watch RUT 1346 and SPX 2265 as indications of the path ahead for stocks; both are making bounce or die decisions.

A bounce in the RUT will send price back up for a back kiss of that brown resistance line at 1358-1360 and the 20-day MA at 1364. A failure at 1346 will open the door to test the support down at 1315-1320. 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.

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