Mid-Cap 400 (MDY) and Russell 2000 (IWM) rallied almost 50% more than the 500 index from 3/2009 to 5/2011, reflecting bull market relative strength. Below, MDY and IWM find themselves setting on the “edge of support!”
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Support on these “weekly charts” remains in place! MDY & IWM finds themselves back at the lows of early August. The real downside action in 2008 took place when support broke at (2). If someone has large long positions… I would not want to stick with them very long should support line (2) be taken out!