The economy is slowing down, and possibly headed for a recession. Small caps get hurt quite a bit in that type of environment. One look at the Russell 2000 futures (ER or MR), and you can see the pressures building as it is the only index with a bearish ascending wedge about to breakdown. It also closed below its 10 DMA, again, the only one to do so. Friday's low was critical support, if we fall below those levels, we are out of the wedge and headed for the 755 level. Watch 768 support on Monday and 10 DMA at 770.80.
This entry was posted
on Saturday, October 28, 2006 at 8:29 AM.
