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$RUT Daily Chart 

What else is there to say? Bears have a shot. Right here. Right now. Absolutely beautiful short setup entry on Friday with a stop at 1200 on the RUT. If you step back and look at the big picture on the Russell, and take out the extreme spike at the beginning of March when Putin "saved the world"... It appears we've had a nice rounded backtest of the large RUT rising wedge which was broken in Jan of this year. Now that the backtest is complete, the index has started to fall... Twice failing to recapture the March highs, creating two nice MACD neg divergences, while also at the same time SPX was creating new highs (diverging), which have now turned into failed breakouts. 

My advice. Get short RUT, first stop at 1200, and then as the index hopefully falls, keep a trailing stop and let's see how low this move goes. 61.8% fib retrace of the entire rising wedge and the trendline I'm watching gets you down towards the 925 area.

Comments

redvetttesredvetttes
925,wow 
that big of a drop,do you think the FED will step in before that ? 4/5/14
Billy RayBilly Ray
The coming wave down, especially in the Momo names with no earnings is going to be fucking carnage (already has begun actually, but it will intensify). 
 
Just as the flashing green numbers that took these stocks to dizzying heights made no sense as they were flashing on the screen, the sea of red numbers on the way down will make NO SENSE. They'll just go lower and lower until they find some sort wash-out point. But, as they're dropping like stones, people will say: Wow and gawk, just like they did on the way up. 4/5/14
Nf6Nf6
Jeez, Rev. That's just a pipe dream. You could find more reasonable targets by looking at areas of support and resistance rather than slapping on a Fibonacci retracement. No one knows what happens next, but you can make a reasoned guess based on prior levels, 4/5/14
groggrog
/TF has been stopped in its tracks numerous times @ 1144. That is some rock solid support. Waiting patiently to see it crumble below. 4/5/14
facesincabsfacesincabs
the shock event on Friday could finally be the event that does not .. watching the momo 4/6/14
facesincabsfacesincabs
(oops) "does that" 4/6/14
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