To answer the previous post’s title question… not if you’re the Russell 2000, which is not bullish at all. After failing support and turning it to resistance the IWM Russell 2000 ETF has made a couple pokes at the 50 day moving averages below resistance and failed both of them. As long as this condition holds, this is a bearish chart.
MACD is obviously triggered down and burrowing for negative territory, RSI is weak and AROON’s daily trend just turned down.
The question is, what are the Small Caps foretelling about the market?
More thoughts (and a chart)…
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- Players are becoming risk averse (more speculative likes of the RUT and Nasdaq are relatively weak.
- Players are hiding out in the venerable (ha ha ha) Dow and S&P 500 thinking that if only they rotate things will be okay, or at the very least…
- They’ll be safer until the market finally tops out (and it will my friends).
- The TLT-SPY ratio (a risk ‘off’ barometer) still looks bullish to me. As long as that is the case, stocks would be vulnerable in the short term. Though you will note that bulls managed to put it back below the neckline today.
Fun stuff. Lot’s of dancing bears, clowns piling out of little clown cars and all sorts of feats of daring do going on.
Wow, in the time it took to write this post the Dow just shaved about 60 points! Fun stuff.
