(Chart 1 - Russell2k Daily Chart Zoom)(Chart 2 - Russell2k Daily Chart)
(Chart 3 - Russell2k Weekly Chart)
8420 should provide very strong resistance and seal in the dead cat bounce of this previous week. We should be headed lower very soon.
There is the head and shoulders breakdown in this resistance cluster (8420-8780) of the daily chart.
There is also the weekly chart with its most recent large wick hammer. Normally those are very bullish. However, this one smells like a trap. Set upon the already bearish technical picture for the rus2k, we see a few key things about this hammer.
-We have had a large down push, a gravestone doji, and a spinning top, all on very good volume the 3 prior weeks which ultimately pushed us under the 8420 level. This last week we went much lower, but ultimately retraced it all and finished with a hammer high just under 8420. This hammer was on 527k contracts traded. The 3 selling weeks prior were on roughly 700k+ each. For such bold price action as this hammer showed, the volume suggests it is the last swan song of the BTFDers (buy the fucking dippers) as we head lower to 7820 and ultimately 6250.
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