Advertisements
Markets – Macro – Stocks – Charts – Alerts

Is The $RUT Ready?

Today’s harsh reversal could be viewed as a single day setback were it not for the weekly pattern in the $RUT that continues to track very closely the 2011 pattern we discussed in recent days and weeks. As markets continue to be extremely stretched with complacency still very much abundant this chart acts as a red flag with the turn in the weekly RSI in particular raising the noise level:

$IWM weekly

The week is far from over, but along with reversals in the other key indices today further downside in the days to come would not surprise. A repeat of the pattern, or at least a rhyming of it would indicate a week or two of backing and filling with a bias toward the downside before a massive acceleration by breaking the weekly 50MA and an eventual touch of the 150MA which would present a likely buy opportunity for a 4th quarter year end rally.

Advertisements

Tagged as: ,

Leave a Comment

The material on this website is provided for informational purposes only, as of the date hereof, and is subject to change without notice and does not constitute investment advice.
Home | About | Disclaimer | Contact
Copyright © 2013-2017 NorthmanTrader
The materials on this website may not be suitable for all investors and are not intended to be an offer, or the solicitation of any offer, to buy or sell any securities.