Decision time for bulls
Small Caps have reaches a support level which will determine how things will go for the rest of the year. In the case of the Russell 2000 ($IWM) we have to consider what will happen around $209 as sellers confirm distribution; a loss of this level will end the trading range and project a measured move down and through the 200-day MA.
The Nasdaq gapped down to breakout support which is also a Fibonacci level on the daily time frame. Unlike the Russell 2000, the support level is not one at the bottom of its range - so a loss would open up for a test of the 200-day MA and a mean reversion move.
You've now read my opinion, next read Douglas' blog.
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