Turning to one of our leaders, I wanted to show the Russell 2000 from weekly and daily views.
The weekly sure does look like a topping pattern breakdown and a re-test that is thus far holding the bear case.
But we had mentioned that the RUT (or IWM) can rise to the daily 50 and/or 200 SMA’s and still remain bearish, so here is that plan just in case. The bounce leg up has been so forceful that it was bound to run out of steam shortly (today’s weakness) but it can decline a bit and not break the bounce if it is taking on the character of a typical A-B-C reaction.
The daily chart shows a support level that RUT should not lose (in making a ‘B’) if it wants to keep prospects of a higher bounce (C) going. If it loses and holds below that level the bear comes back into the picture and gets the upper hand.
Just some points of reference on a stock market leader (both ways).