Sunday, May 17, 2009

$RUT Update for 05.17.2009


Monthly chart shows the market found resistance right off the 8ema, as the bulls were unable to close above this level. Index remains below all key moving averages on this timeframe.

Weekly chart shows the bulls found resistance right against the 34ema on this timeframe. The bears have managed to take back most of the gains made in the prior two weeks. The market found short term support right off the 8ema. Major trader sentiment has changed, and we should see continued weakness into next couple of weeks. IN we see continued weakness, THEN look for retracement of the entire move up off the March 2009 low.

Daily chart shows the bears have managed to take the index back below the 8ema and the down trendline in place. The bulls managed to find short term support off the 34ema, but with continued weakness, look for this to break as the market retraces the entire move up off the March 2009 low.

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