The Russell 2000 (RUT) broke out above the 50% price retrace that served as resistance since early May. Unfortunately, time is running out for the total market and the 1:1 descending Gann Angle sits above.
Chart courtesy of Stockcharts.com
It is possible that this breakout and a new high on the Nasdaq (COMPQ) on volume will start the covering of record short interest. Price could move high very quickly (not my guess, but a possibility). Two weeks of strength into mid-June may shakeout the shorts.
The Oct07-Mar08 range hit the 50% time retrace today and led to a nice price move. It will take another 12 points tomorrow to hit the 50% price retrace. This momentum trust will need confirmation next week to bring in panic buying.
Post Modified: July 3rd, 2008 at 12:33 am
Tags: Breakout · Nasdaq Charts · Price Retrace · Price-Time Balance · Russell 2000 SmallcapsNo Comments
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