The Russell 2000 (RUT) Is Another Index That Put In A Bearish Double Top
The Russell 2000 (RUT) is another index that put in a bearish double top, see the daily and weekly charts one and two at http://bit.ly/TxZUO, as NDX (NASDAQ 100) did, on the same dates (9-23-09 and 10-14-09), see the daily and weekly charts one and two at http://bit.ly/11JgKT.
However, the Russell 2000 (RUT) failed to take out the 9-23-09 cycle high, putting in a slightly lower 623.94 cycle high on 10-14 versus 625.31 on 9-23-09, while NDX (NASDAQ 100) put in a slightly higher bearish double top cycle high at 1756.25 on 10-14 versus a 1754.54 cycle high on 9-23-09.
Since NDX (NASDAQ 100) has substantial large cap influence, it probably benefitted from large cap dominated program trading by the big boys. This probably also explains why the small cap Russell 2000 (RUT) entered a Cyclical Bear Market in July 2007, while SPX (S & P 500) and NDX (NASDAQ 100) didn't do so until 10-11-07 and very late October 2007 respectively.
.......http://www.JoeFRocks.com/
However, the Russell 2000 (RUT) failed to take out the 9-23-09 cycle high, putting in a slightly lower 623.94 cycle high on 10-14 versus 625.31 on 9-23-09, while NDX (NASDAQ 100) put in a slightly higher bearish double top cycle high at 1756.25 on 10-14 versus a 1754.54 cycle high on 9-23-09.
Since NDX (NASDAQ 100) has substantial large cap influence, it probably benefitted from large cap dominated program trading by the big boys. This probably also explains why the small cap Russell 2000 (RUT) entered a Cyclical Bear Market in July 2007, while SPX (S & P 500) and NDX (NASDAQ 100) didn't do so until 10-11-07 and very late October 2007 respectively.
.......http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
1:39 PM
1 Comments:
It's wise to wait for a clear market breakdown before trading short overnight. That is, wait for a 5% major sell signal, which is 5% follow through after breaking the RUT or SPX etc major upcycle's trendline since early March. NDX entered a major upcycle late last year, in 2008.
By
Joe Ferrazzano, at 2:21 PM
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