Monday's selling left no doubt as to who's in control of markets. The real disappointment was how little the 50-day MA played as support given how long ago it was last tested. Instead, we are left looking at alternative support levels for buyers to step in.moved to a net bearish technical picture after months of being net bullish. It's unclear where support may come in so I have included Fibonacci retracements as a guide.
The 38.2% zone is also near a January peak , so if there is no bounce today, then the 38.2% zone is likely next.. I have included Fibonacci retracements and the area that screams out the most is the proximity of the 38.2% retracement zone to the December swing high peak.The Russell 2000 has struggled ever since the 'bull trap'. Unlike the S&P 500 and Nasdaq, it has long since said 'goodbye' to December swing high support.
Small Caps typically lead market recoveries and I would be optimistic for something happening when the 200-day MA is tested.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.
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