The Next Important Tests

By Tim Knight

Since I’m super-short right now (70 different positions and nearly 300% margined), I thought I’d put up a brief post to examine what the next important “break” level for the Russell 2000 would be. Specifically, we need to break about 1335, as highlighted here:

0405-rutclose

And, assuming we have the good fortune for that to happen, the next key test will be the lower channel trendline, which is around the 1300 level.

0405-rut

Not to get too far ahead of ourselves, but break THAT, and we can really look toward repeating the kind of event we saw last time a channel failed:

0405-rutbig

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