I’ve been having a very intense week and it’s been a struggle to get everything done. I’m hoping to get back to my normal routine tomorrow.
I was saying on Tuesday morning that the key support level to watch was rising wedge support on RUT, and very interesting things have been happening there. The rising wedge has broken down and then the double top on RUT has also broken down. The target is in the right area for a 38.2% fib retrace of the rising wedge and RUT is a very technical instrument. This may well make target and in that case the bears are still in the game here, and we should see at least some downside on SPX while this is playing out on RUT. RUT daily chart:
Nothing as interesting happening on SPX. There we have seen the daily middle band tested and that’s holding as resistance so far. The door is open for more downside, but it’s going to need to be quite a bit of downside to stop this looking like bull flag on the bigger picture. SPX daily chart:
Stan and I are doing a free webinar an hour after the close on ‘Defining a Trading System – Optimise Your Trading to Increase Profits’. If you’d like to attend you can register for that here. I’m hoping to get tomorrow’s post out earlier.
