Sunday, September 07, 2008

$RUT Update for 09.07.2008


Monthly chart shows index to remain stuck in a consolidation/trading range. It is difficult to tell from this chart whether or not the consolidation has ended.

Weekly chart shows a double top in place, which is a valid sell signal on this timeframe. Will we get follow through to the downside? Look to the lower timeframe charts for confirmation.

Daily chart shows early bulls stepped back into the market on Friday morning, and managed to close the index slightly higher for the day. Look to Monday's trading for clues as to whether the next move will be up or down in reaction to the Fannie Mae/Freddie Mac news.

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