On The Fly: Weekly technical notes for Russell 2000

While the mega cap indexes saw pronounced corrections, arguably the Russell 2000 (RUT) entered a new bear market. Within a week, price moved from 52-week highs to 52-week lows. That is an astonishing velocity and a very large percentage price move together that may be unparalleled. The key now is whether the 1450 area can hold or not. We have to give latitude to any projections as to price given what happened this week. The 1400 area becomes the low bulls cannot afford to see broken. The old long-run resistance level at 1500 becomes the line in the sand for the bears. Energy was the weakest in a weak sector view, which also pulled down the Financials that bankroll many of those smaller Energy names.