Small caps closed out at the lows of the day after the Bernank did his best Merlin imitation and poofed away any illusions of endless lines of QE3 cocaine on a mirror just waiting to be snorted by market gorillas. We have been in a confirmed downtrend on $RUT since the 3/26 closing highs;
- 3/26 $RUT closing high 846.13,
- 4/10 $RUT closing low 784.15 (lower low than the 3/06 closing low of 787.09),
- 4/27 $RUT closing high 825.47 (lower high than the 3/26 closing high),
- 6/04 $RUT closing low 737.24 (lower than the 4/10 closing low),
- 7/03 $RUT closing high 818.48 (lower than the 4/27 closing high)
With $RUT on the verge of a death cross I fully expect small caps to make a lower closing low than the 6/04 closing low of 737.24 and continue the downtrend.
Comments are closed.
