Largest Bearish wick in years going to mean anything for the Russell 2000?

I’m sorry if I am getting a little micro this morning, yet I wanted to highlight an unusual single day pattern in the Russell 2000. At the highs in the markets yesterday I posted the chart below and ask if the “Russell 2000 was going to get hit on the head… again?(see post here)

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Let me be clear…one day does not a trend make! Since the markets are in the narrow 8%/Quick draw McGraw channel, I want to share any short-term clues that might be taking shape that could give an edge to the bigger move from the channel!

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In time, odds are low a single day pattern will mean much, yet the single day action at (2) sure caught my attention yesterday. Why? The Russell created one of the larger “upside bearish wicks” in years at falling resistance, drawn from a potential right shoulder. For shorter term investors, shorting at resistance on counter trend rallies remains a good idea until proven differently.

The longer a pattern stays in place (sideways channel) the bigger the move will be when resolved! This pattern will end and as always, opportunities will be at hand on the breakout/breakdown.

9 Comments

Tom on 09/29/2011 at 1:13 PM

Very Cool,
Thanks!

Chris Kimble on 09/28/2011 at 2:41 PM

Lurking…Please send email to me, with Premium Member info request in the subject line and I will send you info.

Thanks for your viewership,
Chris

Chris Kimble on 09/28/2011 at 2:40 PM

Dave…Please send email to me, with Premium Member info request in the subject line and I will send you info.

Thanks for your viewership,
Chris

Chris Kimble on 09/28/2011 at 2:38 PM

Tom… A “weekly” close below 650 I feel is key. That was the August low. Great question and Thanks Tom.
Chris

Dave on 09/28/2011 at 1:52 PM

can you explain “Premium Member” please?

Dave

Tom on 09/28/2011 at 1:30 PM

Chris,

How many consecutive days of trading below 650 before you would bet on a major collapse?

Thanks!
Tom

Lurking on 09/28/2011 at 1:26 PM

Chris,

What is that email for the Premium membership?

Thanks.

Chris Kimble on 09/28/2011 at 12:16 PM

Dave… Thanks- Premium members went short yesterday up against this resistance. So far so good. High/Low/Close creates the same pattern, that is the “wick” I was referring to. Thanks for sharing your target!

Appreciate the comment and viewership,
Chris

Dave on 09/28/2011 at 10:25 AM

check out P&F daily chart on IWM – low pole revesal yesterday – bearish target of 560…

Dave

Tom on 09/29/2011 at 1:13 PM

Very Cool,
Thanks!
Chris Kimble on 09/28/2011 at 2:41 PM

Lurking…Please send email to me, with Premium Member info request in the subject line and I will send you info.

Thanks for your viewership,
Chris
Chris Kimble on 09/28/2011 at 2:40 PM

Dave…Please send email to me, with Premium Member info request in the subject line and I will send you info.

Thanks for your viewership,
Chris
Chris Kimble on 09/28/2011 at 2:38 PM

Tom… A “weekly” close below 650 I feel is key. That was the August low. Great question and Thanks Tom.
Chris
Dave on 09/28/2011 at 1:52 PM

can you explain “Premium Member” please?

Dave
Tom on 09/28/2011 at 1:30 PM

Chris,

How many consecutive days of trading below 650 before you would bet on a major collapse?

Thanks!
Tom
Lurking on 09/28/2011 at 1:26 PM

Chris,

What is that email for the Premium membership?

Thanks.
Chris Kimble on 09/28/2011 at 12:16 PM

Dave… Thanks- Premium members went short yesterday up against this resistance. So far so good. High/Low/Close creates the same pattern, that is the “wick” I was referring to. Thanks for sharing your target!

Appreciate the comment and viewership,
Chris
Dave on 09/28/2011 at 10:25 AM

check out P&F daily chart on IWM – low pole revesal yesterday – bearish target of 560…

Dave

Largest Bearish wick in years going to mean anything for the Russell 2000?

9 Comments

Topic Areas

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past