The violent, back-and-forth gaps and price swings during the cash sessions in this market of late is not yet abating, as new longs for late-last week are being put to the test this morning.
Leading to the downside are the small cap stocks housed in the Russel 2000 Index, a critical part of the market indeed and still in grave danger of failing at a lower high on this two-week bounce.
On the 30-minute chart for the small cap ETF, below, note the potential rising channel breakdown of that rally off recent swing lows.
This type of action is enough to keep me sidelined in cash and looking at the short side. Until this chart negates the breakdown threat I am not too interested in fresh money longs.
Also note crude oil breaking below $80 this morning, likely also adding to pressure on equities due to deflation concerns. If that move holds, I am still considering crude shorts via DTO SCO ETF’s.
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d@mn, why did they have to sell out of Cleopatra?
*pretty darn funny there, Chess..
thanks for the ((Grin))