Saturday, February 02, 2008

$RUT Update for 02.02.2008


Monthly chart shows January found short term support off the .382 fib retracement of the last move up from 2002. No buy signal/pattern evident on this timeframe. Index remaisn below the up trendline in place, and below the 8ema.

Weekly chart shows buying strength the last 2 weeks of January. There is clear resistance ahead which needs to be cleared before we can have a run to test the highs of 2007.

Daily chart better shows the short term resistance up ahead. Thursday and Friday saw the buyers coming out in force. Look for pullback and evidence of support before going long. Otherwise, look for clues of consolidation before lower. The Short term trend is up, but the longer term remains down for the time being. Caution is in order until a better pattern develops.

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