Tuesday, December 06, 2016

Russell 2000 in Take Profit Territory

The Russell 2000 pushes again into the 10% zone of historic high prices (1,388 would be enough for the 5% zone last seen in February 2011). Back in 2011 the index rallied for another couple of months before it lost 30% from its high.  The next few weeks would be a good opportunity to take some money off the table to use on the next swing low.


On the Daily chart the 'sell' trigger in MACD reversed with a new 'buy' trigger.


Other indices gained, but none are as overvalued as the Russell 2000.  The S&P is close to breaking to new highs.


Although Tech indices still struggle to regain lost ground.


Santa looks like he will stay through Christmas, but the New Year could be a tricky time.

You've now read my opinion, next read Douglas' blog.

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Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.
 
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