Jim suggested to take a look at daily charts of some secondary indexes and here is my current $RUT chart:



The green ML of a set based on big bearish 3D happens to be also a neckline of a classic head and shoulders. If bulls would not be able to defend this line next week, then a move to the lower ML should follow. This would also be a perfect fulfillment of a successful H&S pattern.
It is all the more interesting as this big bearish 3D fell dead on at the upper ML of a quite important set:

There was an obvious lower ML at .886 at the last low:

Normally I'd say that was the bounce, now we can start back down again. But I don't trust them today. Got to go with the odds, though.

Yep, that was the 77 I mentioned.

Originally posted by jarek

There was an obvious lower ML at .886 at the last low:

Click image for original size

Originally posted by jimkane

How far? New HOD and over that 86, I suspect...

Bold call looking at the overall weakness these days...

If it goes up, I'm watching 86 and 88.50-88.75.

at some point all the prognosticators calling for a bounce throw in the towel and we can go up....is that what we just saw?

Originally posted by jarek

Originally posted by jimkane

How far? New HOD and over that 86, I suspect...

Bold call looking at the overall weakness these days...

Well, I'm a bold kinda guy. But it isn't a 'call', just a read of what I suspect they want. But, the weakness is pervasive, and it may just roll. All I can do is make my reads, and then look for ways to get in based on that read. Then it goes to the management team. Many, many of my reads don't play out. But, I look for potential moves with some size. This gets my reward/risk where I need it to be. And if it doesn't go to the area, who cares, it likely didn't give me anything to get me in by staying weak.

Originally posted by jarek

Originally posted by jimkane

How far? New HOD and over that 86, I suspect...

Bold call looking at the overall weakness these days...

My IWM areas...

Sure looks like it will roll to my lower levels posted previously. But I know the 'players' want to get that 86 level and take it out. They drive it to that 88.50-.75 area, then they don't care, they can let it go.

Originally posted by rat89

at some point all the prognosticators calling for a bounce throw in the towel and we can go up....is that what we just saw?

Originally posted by jarek

Originally posted by jimkane

How far? New HOD and over that 86, I suspect...

Bold call looking at the overall weakness these days...

It was rising for months with almost everybody being bullish, so I think it could drop for few more days with almost everybody being bearish now?

it might have to, and we'll find out soon

Originally posted by tx_ches

I could certainly see it going lower though.