Friday, August 3, 2007

1 more chart for the Weekend - Russell 2000

One last chart for you to ponder over the weekend. The IWM's are the tracking stock for the Russell 2000. I prefer the tracking stock so we can analyze the volume along with price. The volume on the outside reversal is huge and I cannot stress enough how important this formation is because it is occurring on the MONTHLY chart. The trend line in question being broken is 4 1/2 years old so it is of some important ! There are those out there who will look at how far the Russell has fallen from its highs (over 10 pts on IWM) and think it's too late to short. The only advice I can give you, being impartial is that stocks and indices will go up and down much farther than you can imagine at the time. Think tech on the upside, think the Dow 1929 on the downside for just a couple of examples. Good trading to you all.

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