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Written by Marc Eckelberry
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Saturday, 25 May 2013 10:01 |
 My last post suggested increase volatility on the way and it arrived with a bang. One index that was quite precise in defining a high and possible top was the Russell 2000. Chart of TF (futures) shows a consolidation band from February to early May, followed by a breakout which ended with a measured move to 1x the band width (1009.20, high was 1008.40). Resistance is now 61.8% or 987. Even if we go back up for a retest, the market has spoken and it behooves investors to take heed. With margin debt at levels not seen since 2000 and 2007, the implications could be brutal in the not so distant future. |
