Wednesday, May 25, 2011
Russell 2000 Index (TF) Intraday 5/25 10:45 AM CST
So after an almost breakout overnight in the Asian session, we are seeing a hard pullback in all equities, and if you've been short you might start to panic, but I think its a little premature. If we look at the daily chart we are still in our downward channel, and while it would be a great close to finish under the yellow support line at 813, I don't feel its imperative to do so. Going more in-depth into the hourly chart we see that we have been doing this a lot, and actually got some normal divergence to see this uptrend coming, but we are at this moment still within the retracements of this latest down move. As long as we stay roughly in this channel and inside the 62% retracement (@ 824.3) than I think all is still well in shortland. Rome wasn't built in a day and certainly strong psychological supports like 800 weren't broken in a day either. Don't panic, and if you're bold this might just be a chance to STFP.