The stock market had a nice little rally in the middle of the week. But now what?
Today we’re looking at the current resistance that the Russell2000 is running into. A month ago we discussed the head & shoulders top forming in this basket of a small-cap stocks. We said that $78 was our line in the sand. This level represented the neckline of the potential topping formation. Two days later, the market broke down hard and we saw 3 weeks of lower lows.
The problem we’re running into now is that this former support has become resistance on any attempt to get back above $78. This is exactly where we are today:
I find it hard to believe that the russell can get though this key level with out at least several attempts. It think it’s going to take some time.
But yea, if we can see 78 & 79 hold, then I think we can potentially see new all-time highs for the Russell2000. But the little guys have some work to do.
Tags: $IWM $RUT $RUTX $TF_F