The increasingly bearish developments in the Russell 2000 (IWM) were negated by the huge rally we saw Friday taking the small cap index above their 50 dma and the neckline we've all been watching at ~$78. Even though this was the last day of the first half of 2012, and fund managers certainly had a vested interest in this kind of rally, it does appear to be genuine (like it will stick). Volume was healthy and bullishness was wild eyed across the board after every major US stock index appeared to hold their (rising) 200 dma. Its hard to ignore the bullish look of many daily charts including IWM above, but the weekly's still show a long term double top to me. I'd be surprised to see IWM trade below $78 in the near future, but if it did, I'd get bearish in a hurry. For now though, the bulls are in control.
Disclosure: I still have a few IWM puts to get rid of, unfortunately.
2 comments:
I really thought the market was fixing to roll over hard then Friday happened, WTF!?
You are definitely someone that has something to say that people need to hear. Keep up the good work.
Regards
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