Last week I posted that the Russell 2000 was foretelling of an upcoming bear move. Generally small caps lead the way. After a bounce Friday to the 50/10 LRCs and giving the 25/5s time to cross below the 50/10s, the market is now resumed its down move. There was a bounce this morning but it was stopped at all the various resistance points. A great shorting opportunity.
On the SP the next support is at 1475 area where there is an uptrend line coinciding with previous resistance. Also the weekly charts have not yet broken down. it could rebound off this level.
The Russell, which gave the first indication of a market trend change, looks like next support is in the 868, and if it breaks that it could drop another 5% at least.
Nasdaq 100 has broken out of its trading range, breaking below 2700, next stop 2600 and then the big H&S neckline at 2530… that is a key area to watch.
