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Russell 2000 Rout As Sellers Swoop In Across Markets

By Declan FallonStock MarketsDec 02, 2021 12:06AM ET
www.investing.com/analysis/russell-2000-rout-as-sellers-swoop-in-across-markets-200610164
Russell 2000 Rout As Sellers Swoop In Across Markets
By Declan Fallon   |  Dec 02, 2021 12:06AM ET
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There was little doubt about who was in control of markets on Wednesday.  Sellers swooped in across markets but it was the Russell 2000 (via IWM) 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. 

IWM Daily Chart
IWM Daily Chart

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 today will hold this support, but short term stochastics are oversold.  I would view this level as last chance support for the breakout.

COMPQ Daily Chart
COMPQ Daily Chart

The S&P undercut its 50-day MA, which also registered as an undercut of the breakout.  Trading volume did not register as distribution, but MACD, On-Balance-Volume and ADX are all bearish. Despite these losses the index is sharply outperforming the Russell 2000.  The next obvious target for the S&P is the 200-day MA. 

SPX Daily Chart
SPX Daily Chart

With the S&P and NASDAQ both looking like they will kick away 50-day MA support we now have a final support target of the 200-day MA.  The problem is that the Russell 2000 has made short shrift of this level and is teetering into a larger decline.  There is still time for bulls to stop this, but for now—bears have a rare opportunity to twist the knife. 

Russell 2000 Rout As Sellers Swoop In Across Markets
 

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Russell 2000 Rout As Sellers Swoop In Across Markets

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Comments (3)
Stephane Adam
Stephane Adam Dec 02, 2021 5:25AM ET
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My strategy is simple. No Quantitative Easing. No stocks. the upcoming acceleration of the tapering is not welcome
Ayumastura PinkLady
Ayumastura PinkLady Dec 02, 2021 12:19AM ET
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nasdaq if u see it as double top, it's broken. If u see it as hns, it's broken. But if u see it as inverted cup, also broken. lol
Guidothekiller pimp
Guidothekiller pimp Dec 02, 2021 12:14AM ET
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Thanks. Tomorrow I will add some calls to my Russells and maybe even roll them. I should be okay and still make some nice profits if it starts to rebound.
 
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