RUT Russell 2000 Small Caps 2-Hour Chart; Positive Divergence Developing; Lower Band Violation

The Russell 2000 small caps are falling apart today like the other broad stock market indexes. RUT retreats -1%. Late last week, RUT came down and violated the lower standard deviation band so the middle band, at a minimum, at 1486, is on the table. Price started to rally last week but then collapsed on Friday into today.

The falling wedge pattern is bullish. RSI and stochastics are at oversold levels agreeable to a bounce. The indicators are setting up with possie d except for the MACD line that remains weak and bleak (red). Thus, RUT will likely bounce for a candlestick (2 hours), then retreat for a candlestick or two to print a lower low. The LOD is 1423. At that time, the MACD line should begin sloping higher and positively diverging with the lower low in price. That would be the near-term bottom; say, anytime over the next 2 to 8 hours so today into Tuesday noon time. The MACD line will dictate when. Markets look pretty nasty right now. RUT is at 1433.

The TICK machine is printing -1000 to -1100 readings and lower between 10:45 AM EST and 11:30 AM EST when Europe closed. Also, a few minutes ago at 12:20 PM EST. These are very negative readings showing that people are selling off stocks with fear (selling may be reaching a crescendo). There is blood in the streets. 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.