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The 850-870 range has become tough resistance for the Russell 2000 index over the past 5 years. Each time this level was reached and support was taken out, Small caps fell in price.

Now for the 3rd time Small Caps have hit line (1) and a key support line is in play. Odds are high that a break of support at (3) would bring in sellers!

 

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