Russell 2000 Takes The Lead

 It’s too early to say, but we may have found the next serious resistance level at 1340. Today’s drop wasn’t bad, and volume dropped a bit, but the relentless down trend we had all day has to be a reason for concern. From a pivot point perspective, we have a pivot at 1437, which we fell well below today, so we may be in for a bit of downside testing here. So far, there is no sign the market has topped, but without another QE rumor, there isn’t much to send it up, either.

 The up trend on the price relative line on the Nasdaq appears to be over, so the bullish sentiment has clearly softened a bit. This chart fits a little better, which means it is possible that we are topping, but that is not a certainty by any means. 

The Dow Industrials do seem to have a serious resistance level here, and the price relative has stopped dropping for now, but not by much. There is nothing here indicating an imminent collapse. 

The Russell 200 actually looks pretty good right now: today’s drop was very mild, price relative is still moving up, and according to the pivot points here, this still has a ways to go before hitting serious resistance. As things look now, any downside here should be pretty short and mild.

i will have the new highs update shortly.

2012-09-10 16:09:49

Source: http://samuraitrader.blogspot.com/2012/09/russell-2000-takes-lead.html