Russell2000 – When support become resistance – sadness ensues

Yesterday while market participants were reveling in an orgy at the bullpen i cast doubt on intermediate term market direction by posting http://signalinea.com/end-of-q1-window-dressing-just-in-time-for-big-resistance/

 

I was adding shorts not on the blue chips, but the high multiple sector. Here’s why..

Here’s the Russell2000 weekly. If this old support does indeed become resistance it’s a long way down. And once again USD weakness may mitigate the fall a bit but either way, it’s not pretty.

russell2000-chart

 

 

 

The best charting teacher I know:
The Morning Analysis Service by Paul Coghlan
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1 comment

  1. paul   •  

    The broad based NYSE NYA index shows a recent bullish downtrend line breakout also it is sitting on median line support—a problem trading the market longer term for me is decidng which index is in charge?
    NYA has many non-stock entities.

    For some reason I cant paste my chart here but if interested send a email.

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