Courtesy of Doug Short.
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
The Russell 2000 is up against a 14-year resistance line and might have put in a double top. This chart was sent to Premium Members over a week ago, as members were establishing short positions very near all-time highs.
After creating what could be a double top, the following week the Russell created a “weekly engulfing bearish pattern”, wiping out a month’s worth of gains in the small cap index in a single week!
Joe Friday: “If the Russell breaks steep rising support line (2), small caps become vulnerable to a large decline.”
For information about Kimble Charting Solutions, send an email to services@kimblechartingsolutions.com.
