Thursday, April 22, 2010

$RUT Daily

I'm calling it a throwover of the wedge off the bear market lows of 342. No fibs on the first chart cause I want you to see all the trendlines. What I see is a clear A-E wedge with indicators remaining overbought as this last push up (possible blow off top) in April reversed the daily indicators and have allowed divergences to be set.
Here is the weekly chart that shows the 750 resistance and the bear market upper trendline. that intersection the week of 7/12 or 19 of the wedge top line, resistance at 750 and the bear market upper TL is an interesting point (in case it should rally an unfathomable one last time).
Drill down Daily with possible Fib targets in gray rectangle if the top is in. That divergence in RSI is really hard to ignore. Three support trendlines (peach, blue and pink).I could go out on a limb and say 5/19 at 653 at the 50% fib would be a possible target. Another would be 640 on 6,26 at the 61.8% fib.