/RJ Potential LongThe triangle is one of the most well-known chart patterns in existence. As it relates to Elliott Wave it often precedes a strong final move and gives generally accurate price targets.
An interesting part about the current setup in the Russell 2000 is that at the same time as it is forming a potential triangle it is also forming a H&S patterns. To me, this is great news as the H&S is a lot more obvious than the triangle. That means that one should expect the e wave to take out the trendline in what would also be a broken neck-line. One could assume that such a breakdown would bring a lot of shorts into the fray which would only add to the strength of the next move to the upside as many people would be caught on the wrong side of the trend, which is UP for the entire market. Ideal setup, will continue watching and also begin to look at stocks that make up the index as the theoretical 15% move would include stocks that move a lot more than that.
RJ1!
Russell love fresh SQUEEZED...bulls? The Russell still has some ways to go until hitting her breakdown levels. It's lagging the $ES an $NQ. We will watch the 1152.00 area to see if price can hold. If we see price trade below this area then a squeeze could be in play. Be patient and wait for a trigger.
SPY still under distribution$SPY disposition has not changed even with the failed o/n futs attempt to back test resistance Fri. Since the beginning of the year, I have seen the pace of distribution pick up. I am showing the average trade size of the SPY as a comment after a clean static chart under this post because it reveals professional intent. Until I see significant demand signals at support/resist levels, I will continue to lean to the short side, trim existing positions and not get too enthusiastic on new longs. New position sizes will be less than usual. Multi-national large and mega cap companies are not enjoying the benefits of a rapidly rising US Dollar $DX ($105 is a significant resistance zone). Small cap, domestic companies are faring better. A comparison of the $IWM vs the $SPY reveals this. I continue to be very concerned with the NYSE margin figures ( www.advisorperspectives.com ) and to a lesser extent the equity valuations ( www.advisorperspectives.com & www.advisorperspectives.com ). I believe technological advances in the advanced economies result in a steeper regression for equities. Much of the baby boomer selling has been absorbed by company buybacks. IMO SPY should at least test down to the 202 level. Let's see if significant buyers show up.
$IWM Rut2k fails to hold supportAverage trade size picks up, #3 supply, then #2 supply all lead into 2015.03.02.Mon top (so far). Support is not holding, but the day isn't over. Support & Resistance levels are plotted.
