The first week of February was down hard. The second week was up hard. And now, the third week, is a total muddle. I’m not going to pretend that I’m not disappointed that things have stalled out like this, but the silver lining is that we have violated key horizontals to the upside. We might – – nowhere does it say we couldn’t – – but I obviously hope we don’t! Here are the key levels for The Russell 2000:
And the Dow Composite:
I would also note that the moving averages are still completely on the side of the bulls. Even with the ostensibly scary selloff early this month, you can hardly see a dent, and nothing has crossed beneath anything else. It’s still a smooth, steady ride higher.