In real terms, today’s selling in the Russell 2000 was relatively light, but it was the only business in town. The selling brought the index back to handle support, but it hasn’t violated the gap, and there is a 50-day MA which ‘golden crossed’ with the 200-day MA to provide support.
The S&P edged up a little, which modified the Fib levels for the index.
The Nasdaq gave up some ground, but recovered some of the losses from the morning. It’s still anyone’s game.
For tomorrow, the Russell 2000 remains the favoured short play. Buyers will probably get more joy from Large Cap indices, but the current tight action in all indices will have to unwind at some point, moving sharply up or down: the longer the tight action continues, the greater the reaction will be when it ends.
