Lots of side way actions, and this time Russell 2000 is the index that is leading..
We can see that the index broke out of the ‘wedge’ pattern and the last two moves are nearly exactly the same – we have been long $TNA and thats one of the good winners..
Now, if this index is to ‘retest’ the upper trend line on this chart it would equal about a 3%-3.5% move lower from here and if the bull market is to take off – I suspect it would be from this area (around the $157-$155 level on the chart). So I have this marked on my screens for major support.
The same price symmetry just triggered in the Transportation index:
Slow day today with not much price action awaiting the Fed minutes (FOMC) which are scheduled for tomorrow, we are in the camp a break above 2740 on $SPX will set us to 2,750-2,755 and then 2770, we are waiting and we will be adding to our long positions. On watch the IWM and Transports react to such a move – do they each fail to make higher highs when the S&P rallies to 2,755? That will be key for me and would signal a sharp drop ahead.
Stay small and dont over react, patience is important.. and we have been waiting on some major stocks that we are following like $NVDA, $AAPL, and of course $GLD and $FCX
Updated Chart from Chat Room
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