Russell 2000 Looking Weak. 9:11 AM CST 7/6

(Chart 1 - Russell 2k Day Chart)

SNP still looks pretty good

Nasdaq certainly doesn't look weak

Russell 2k is generally a leading indicator, so it is no surprise that if weakness shows itself, it would show first in the Rus.

Since the high at the beginning of May, we have been making lower highs and lower lows.

This most recent run up has been pretty epic and strong.

However, we are still lower than the last peak.

Halfway through today, there is a nice bearish engulfing candle forming.

It happens to be forming off of 84.20, the bottom of the trading range, and a line of great resistance.

We also have the beginning of some hidden MACD divergence (white sloping lines)

If this keeps up, I think this could be a decent sell with a 78.20 target

Russell 2k At Key Resistance. 5/30 7:00PM CST

(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.

Russell 2000 Mini Future End Of Day Macro Charts 5/23

The bearish channel (magenta) is in control. Short term, the Fibonacci cluster at 8060-8100, as well as the 100 day VWAP (yellow) at 8135, should provide good support and prevent price from reaching the lows of the channel. A test of the channel midpoint should be the first test of if this thesis is valid. Should the midpoint provide meaningful resistance, I will be more inclined to discount the 8100 support and look for a test of the lows of the channel near 8000.