Russell 2000: Time at mode break down
Updated
In this chart I examine the trends in the Russell 2000 index, from the perspective of the 3-day chart.
We can see how the previous 'Time at mode' signals that triggered in the past, forecasted the duration and price range of each rally before a pull back started, and the speed line support levels held, giving way to uptrend continuation.
Now, we're in a tight spot, we need to see bulls hold here, and prevent bears from dragging the index down under the red, or as a last stronghold for the bulls, the orange speed line support zone.
If and when we see a new 11 bar level up here, we can assume trend continuation is in order.
For the time being I remain cautiously long NAS and SPX cfds, as well as a few fundamental picks in equities, but I'm open to shorting the failure of bullish momentum that can trigger by the 20th's close.
Good luck and remember to reduce your risk exposure this week, either via options, futures, or simply changing allocation of funds to more diversified and less correlated instruments, and different trading strategies.
Cheers,
Ivan Labrie.
We can see how the previous 'Time at mode' signals that triggered in the past, forecasted the duration and price range of each rally before a pull back started, and the speed line support levels held, giving way to uptrend continuation.
Now, we're in a tight spot, we need to see bulls hold here, and prevent bears from dragging the index down under the red, or as a last stronghold for the bulls, the orange speed line support zone.
If and when we see a new 11 bar level up here, we can assume trend continuation is in order.
For the time being I remain cautiously long NAS and SPX cfds, as well as a few fundamental picks in equities, but I'm open to shorting the failure of bullish momentum that can trigger by the 20th's close.
Good luck and remember to reduce your risk exposure this week, either via options, futures, or simply changing allocation of funds to more diversified and less correlated instruments, and different trading strategies.
Cheers,
Ivan Labrie.
Note
I'm back in the NAS100 long, looking to buy QQQ tomorrow and trading QLD/QID for short term operations.The chart here demands a bit of sideways action before we can confirm further upside, unless it just jumps straight up, in which case, a smaller mode here would signal exhaustion in the rally, which would make me cautious by year end (maybe a signal of rates increasing later on)
Note
We have a smaller mode signal, this implies that if the market holds above the mode at 1232.63 until this bar's close, we'll probably see a rally to the forecasted target for this last range here, possibly it being the last one before a sizeable pullback to the 1140.67 level after the uptrend runs out of steam. The target for this last uptrend signal is 1294.15. We can also remain sideways and return back to the uptrend mode, until we form a larger mode, OR a distribution pattern like the one we had in SPX before the big pullback. RgMov and 'time at mode' analysis will give us a timely signal here.Note
Russell 2000 held support at the top of the 'smart money buying wave', and above the FOMC daily high. Market remains bid, BID also shows strength, and don't forget to look at IBB. Buyers stepped in here.Note
Within 3 days, sellers need to drive price down to 122.84 within the next 3 days to prove their resolution. Else price will continue higher.
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