The Russell 2000 is breaking down this morning, moving below the 20 and 50 day moving average. I do think there is an attempt to bounce the market here, and do think we regain the 50 day on a closing basis, but the trendline break now become resistance.
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It’s also important to note that the Russell 2K failed to make a new 52 week high like the rest of the market, signaling a nice little divergence.
I’m pretty light here. I took my loss in $PCX this morning and sold near the open. Luckily the sector held up this morning and I had a chance to escape the race to zero in these names.
I still hold $SD, and it is still my largest position here. I also own a 1/2 position in $IPI which I plan to make full at some point on this dip.
I should have used the weak close yesterday in VHC to sell, but I am content holding it here with all the MA support underneath.
Let’s see how the rest of the day shapes up, I am in no rush to make any moves here.
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