Saturday, July 19, 2008

$RUT Update for 07.19.2008


Monthly chart shows support off the March 2008 low to be holding, as aggressive bulls stepped back into the market as this level was tested last week. Index currently remains below the 8ema and the 34ema. Is the market in consolidation, or is this the beginning of a new trend up? Only time will tell. Look to the daily chart and its price pattern for better sense of true trend.

Weekly chart shows the bulls showing up with aggressive buying as the March 2008 was tested. Index currently remains below all key moving averages at this time.

Daily chart shows shows 5 waves down off the June 2008 high. IF there are 5 waves down, THEN look for an abc 3 wave retracement. This week's low was made with regular divergence seen on the CCI indicator. Friday's trading session saw profit-taking going into the weekend. Upside targets for this retracement are at the .618 fib level and the .786 fib level.

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