$RUT Update for 08.23.2008

RUSSELL 2000 INDEX - $RUT

Monthly chart shows current support holding, with the bulls managing to take back 50% of the losses of the last move down from the July 2007 high before profit-taking took place. Despite the profit-taking, the bulls still managed to keep the index above the 8ema and the 34ema.

Weekly chart better shows the consolidation wave that the market has been tracing out.

Daily chart shows possible 5 waves up off the July 2008 low. IF we get a lower high, THEN look for a sell pattern to enter short.