$RUT Update for 07.05.2008

RUSSELL 2000 INDEX - $RUT

Monthly chart shows increasing selling pressure, as the index is trading below all key moving averages. While both the $INDU and the $SPX have broken their 2008 lows, the $RUT and the $NDX have not, as of yet. No buy signal/pattern evident on this timeframe. No reason not to see an eventual break of their 2008 lows.

Weekly chart shows the index continues to make lower highs on this timeframe, with increasing downside pressure seen the last 2 weeks. No buy signal/pattern evident on this timeframe.


Daily chart better shows the increasing bearishness of the index. After such a sharp move down, one can expect a period of consolidation before the next leg down. High probability that a lower low will be made.