RUT has break its support at 710.3
This support level is identified by both the Chikou Span and the Kijun sen (trend line).
With the whipsaw movement over the past few days, and the breakdown from this support level, this could be the beginning of a major correction.
Catalysts at this moment seems likely to be from the PIIGS.
Yesterday’s continuation of S&P 500 rally has seen it reach a very important milestone.
On the chart, it has pierce through 828, but not with strong volume.
The missing volume is a critical factor as this is a level that has been tested 3 times this year before it finally break down.
Just as it is difficult to break down, I believe it Â will be also face difficulties breaking through convincingly.
More importantly, we can see that S&P has now ‘slammed’ into the wall of kumo.Â
I guess, the market is looking for catalyst next week. Perhaps the G20 meeting next week is a good catalyst to help it break through.
Nothing much has change since Geithner’s announcement of the ‘bad bank’ rescue plans. The economy is still not doing well.
We can’t expect S&P 500 to continue soaring and making new high, can we?