When everyone starts getting comfortable with a "bottom in place", it pays to look at the Russell 2000 and see if risk money is really being put to work. The RUT chart shows the importance of where we are. Today saw another failure at the 200 dma, but more importantly, a strong rejection at 750, or 50% off all time highs and the March lows. Until we close above that level, I would remain extremely cautious with the long side on anything other than day trades. We do have a clear up trend, but with a slight wedge. The May 19th high of 748 is where many shorts just placed their stops, tomorrow's action will be interesting.
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on Thursday, May 29, 2008 at 5/29/2008 08:26:00 PM.
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