Sunday, May 25, 2008

$RUT Update for 05.25.2008


Monthly chart shows profit taking, as bears took back more than half of the gains made in the month of May 2008.

Weekly chart shows large bearish engulfing candle pattern, indicating change in investor sentiment. The bears managed to erase all the gains made the prior week. Resistance is currently right at the 50% fib retracement level.

Daily chart better shows the resistance encountered by the bulls. The bears started their profit-taking and selloff right off the 200sma. The whole move up off the March low looks to be corrective in nature. IF this is indeed consolidation, THEN look for the next leg down to make lower low.

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