Russel2000 Index: Correction extends
Updated
The major weakness is part of a first down leg on the weekly chart. Support comes in around 1455 (lower part of the cloud) and 1445 (38.2% retracement). Setting a minor and intermediate base in this area is probable before the corrective phase continues. So even though a minor bounce and/or consolidation can be expected once reached, we strongly advise against any buying. Instead, cover some shorts (20% or so) and re-enter on rallies if they occur.
For the coming weeks and months we expect to see 1355 as a minimum. Once a bounce occurs new/ more accurate down side projections can be made.
Long term trend: neutral
Outlook: major correction in primary trend
Strategy: hold-short / sell rallies
Support: 1640 / 1455 / 1355*
Resistance: 1660
Major shift in sentiment: above 1660 (stoploss)
For the coming weeks and months we expect to see 1355 as a minimum. Once a bounce occurs new/ more accurate down side projections can be made.
Long term trend: neutral
Outlook: major correction in primary trend
Strategy: hold-short / sell rallies
Support: 1640 / 1455 / 1355*
Resistance: 1660
Major shift in sentiment: above 1660 (stoploss)
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