RUT Russell 2000 Small Caps Daily Chart 150-Day MA Flattens Indicating Cyclical Bear Market

Here is an update on the RUT cyclical bear market saga. The 150-day MA is a critical moving average that identifies a cyclical bull market versus the cyclical bear market. You can check the 150-day MA for all your stock holdings to see if you are on the right side of the trade, or not. If the 150 is sloping upwards, a cyclical bull market is in play with higher highs for the weeks and months ahead. If the 150 is sloping downwards, a cyclical bear market is in play with lower prices for the weeks and months ahead.

This chart was first highlighted when the 150-day MA flattened and turned down in early August ushering in a cyclical bear market. In fact, that small circle may represent the conception of the cyclical bear market in stocks here forward. As long as the 150-day MA continues sideways to sideways lower, sloping lower, the cyclical bear market is locking on course.

As long as the RUT stays under 1150-ish, the 150-day MA will curve downwards. The market bulls desperately need the RUT above 1155 and higher as soon as possible to bring back the party days. Remember, the Dow (INDU) 150-day MA flattened as well but it has since resumed the upperward path. Watch the RUT and INDU 150-day MA's since they tell you if the long awaited cyclical bear market (for the coming weeks and months and year or two) is here, or not. Follow the COMPQ as well since it is starting to flatten. For now the bears are taking control of markets starting with the small caps. If RUT remains under 1150 and lower, the bears will win in the stock market moving forward; the broader indexes would be expected to follow to the downside. As has been the case for the last 5-1/2 years, a central bank can fire a money bazooka at any time creating happy days again. 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.