Russell 2000 Rout
There was little doubt about who was in control of markets today. Sellers swooped in across markets but it was the Russell 2000 which took the worst of it.
There was a brief attempt to recover the 200-day MA, but aside from that it was sellers all the way. Volume rose to register as distribution, adding to the malaise in the market. Technicals are net negative, but stochastics are oversold and a rebound is not far off.
The Nasdaq rushed down to its 50-day MA, stopping right on the moving average. Trading volume did not register as distribution. It's tough to say if tomorrow will hold this support, but short term stochastics are oversold. I would view this level as last chance support for the breakout.
You've now read my opinion, next read Douglas' blog.
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