Since I’m super-short right now (70 different positions and nearly 300% margined), I thought I’d put up a brief post to examine what the next important “break” level for the Russell 2000 would be. Specifically, we need to break about 1335, as highlighted here:
And, assuming we have the good fortune for that to happen, the next key test will be the lower channel trendline, which is around the 1300 level.
Not to get too far ahead of ourselves, but break THAT, and we can really look toward repeating the kind of event we saw last time a channel failed:
