Monday, December 14, 2009

Russell 2000 "catches up" with flair as Dow marks time closer to cycle

Today the equities indices just didn't want to conform to the ChartsEdge cycle forecast expectations, and that was that! It seemed "broken" by mid-day though I started thinking maybe they'd do catch-up in the afternoon but no dice. Only the Dow chopped around, looking closer to the ChartsEdge pattern recognition map (which was at their subscriber site). I'll just say, the general drift was clearly up, especially the Russell 2000. You can see below, in the 10-minute charts of it (top) and the Dow (bottom), that the RUT had some "catch-up" work of its own to do from its relative underperformance the prior few days.

Does this make an interim top? Maybe, if the TCI graph holds and points to a relative top today or tomorrow. As noted this weekend, the equity markets aren't likely to crash anytime soon, so a trading top here or soon should mostly likely produce another swing buying opportunity.

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