Wrap Up (by Faces In Cabs)

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First, a heart-felt welcome back to Tim and his family.

I am keeping this blog post simple and short.  After this week, the charting landscape has A LOT more damage on it.  We have seen 7% corrections already from the $SOX and $TRAN.  Big bulls and institutions will need to step up boldly and quickly to prevent this entire market from moving into a formal market correction.  Distribution days have remained pervasive throughout the week, and well documented by publications like Investor’s Business Daily.  Since I have shared so many chart over the last 8 days, today I am sharing just one.

Russell 2000 (1100 is big number support, then 1082 is range support)

After correcting 11% already, the small cap’s have remained very stubborn hitting on resistance this week.  There is a reason for that.  They are just above 1100 big number support.  That is the level I am watching on Friday (when I expect more market selling in front of the weekend).  Then, I will watch 1082 (which is the bottom of a double top range).  I am short small cap’s going into Friday.

Since Tim will be back Saturday, this will be my last market post.  Now that I have fulfilled my commitment to blogmeister Iggy, I have some summer projects to quickly attend to.

Good luck with your own trading (luck = preparation + opportunity + a little risk).