Another rough day in bear-land (which is why the quantity of long positions I'm holding keeps ticking higher), particularly in the world of the small-caps. The Russell 2000 boomed 2.24% higher just today, crushing the likes of TWM. The Russell's strength is getting unnerving to me, because it is seriously threatening a host of resistance levels……..
Above you can see that:
(1) The Russell has recaptured effectively all of the loss experienced from January 19th to February 5th;
(2) It is right at the cusp of a downward trendline; even a somewhat higher day tomorrow would break this line;
(3) Most importantly of all, it is about to intrude upon the huge dome pattern that goes back for five years and is tinted in green (you can only see a small part of this pattern here).
Simply stated, I'm starting to get worried. The market's strength has been baffling, particularly in areas which – – one would assume – – would be suffering in an environment ravaged by joblessness. Like – oh – retail!
