Sunday, August 03, 2008

$RUT Update for 08.02.2008


Monthly chart shows that aggressive buyers managed to regain about one-half the ground lost to the bears the month before. Index remains below its 8ema and 34ema currently. Look to the lower timeframe charts to determine whether this move has any more potential to go higher. So far, there is a test of the March 2008 low, with a higher low in place with July 2008's trading activity.

Weekly chart better shows the higher low in place. Upside resistance will be at the June 2008 high. On a short term basis, there is a buy signal in place, and no sell signal/pattern evident as of yet.

Daily chart shows the bulls managed to hold onto their gains the past week. Will they be able to take the index higher to the next upside target? Or will 726.27 be resistance for profit-taking and new sell shorts? Look to next week's trading for better sense of direction.

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