This post is just about this single chart, which is the 15 minute bar chart for the /RTY (Russell 2000 small cap) futures:
Going back to last Wednesday, we’ve got five distinct events:
- The green oval is, right on the heels on the chilly CPI report, the /RTY spiked to PRECISELY the base of the bearish setup before (thank God) retreating swiftly;
- The first red circle is the comparatively feeble pop made following the equally chilly PPI report;
- The second red circle is the relief rally based on the Iran situation seeming to settle down;
- The third red circle is the post-FOMC pop in which the /RTY absolutely perfectly tagged the Fibonacci at 2150;
- The fourth and final red circle is the post-TACO rally in which Trump, as always, totally caved and said he’d wait a full two weeks for his genius mind to figure out what to do about Iran
My point here is that it’s crystal clear the Fibonacci at 2150 is massively important. Four consecutive times, the bulls had every good reason to blast the /RTY into the stratosphere, and in each instance, it was bitch-slapped back down beneath the Fib.
This level is key. I’m quite weary of these attempts to beat it and, frankly, I hope we’re done.
