Russell … Hovering At Target Level

Price Action Confirming Fibonacci

It’s just past midway through the session.

The weekly chart of Russell 2000 IWM, is hovering at the first projection level … 23.6%.

Russell 2000, IWM, Weekly

We’ll get closer in, using the 4-Hour chart

Note how price action is oscillating about the 23.6%, level.

This type of behavior provides confirmation the market ‘respects’ that level.

Note in the weekly chart, there are no fewer than six weekly bars (including this week) that either had an open or close, near 23.6%.

As this post is being created, the market appears to be pivoting out and down from this area.

It may be on its way to lower levels (not advice not a recommendation).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Russell, Low(s) In Late June ?

Cycles & Fibonacci

Both time cycles and Fibonacci are aligned … targeting intermediate low(s) for the Russell (IWM), in June.

This post, released late on Monday, showed a potential reversal set-up for the IWM.

The next morning (yesterday), saw a sharp, brief move higher which quicky reversed into a sustained decline.

That decline continues during this session.

The weekly chart of IWM is below; marked up with a Fibonacci time sequence.

Russell 2000, IWM, Weekly

Week 34, identified with the back font, represents a 1 : 1, Fibonacci projection of the initial leg down.

Week 34, in the magenta font, is a 1 : 1.618 projection of the same initial move.

These are projections only (not advice, not a recommendation).

However, there’s a time cycle study available at this link.

Go to time stamp 8:27, for the Russell 2000. The method is different, but the projection is similar; heading lower into early Summer (mid to late June).

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Russell 2000 … Hit & Run ?

Up-Thrust And Test

Shorts Covered ?


Russell 2000, attempts to break through resistance; reverses and then tests (Monday), just as ZeroHedge says the short squeeze is over.

There’s a lot of trying-to-make-everything-look-complicated, wording in the link above but the take-away is, the market may be finished with the recent short squeeze.

At this juncture, Russell 2000 (IWM) looks like it’s hit long-time resistance around the 211, area and reversed.

The past two trading days may have tested that reversal.

IWM, Daily Close

The support (blue line), now turned resistance has been in-effect for over a year.

The zoomed version below shows it’s clear, at this juncture, price action’s not penetrating resistance.

As with bonds in this report, we’re at the danger point.

This is where risk is least for either short or long (not advice, not a recommendation).

Naturally, with the ZeroHedge report (above) saying that shorts have been effectively covered, price action direction favors the downside.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279