RUT – Nearing Resistance

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The Russell 2000 index is nearing a resistance level (supply zone) set in late October 2011.  The price action also displays a loss of momentum (bearish divergence).  Price came close to the zone on 1/3/2012 & retraced.  Would look to see how price reacts and possibly short for a near term pull back or at least be cautious about opening any longs currently.  A break above the zone is bullish, with no real resistance till  the around the 810 or more strongly the 840 level.
This entry was posted in Divergence, Indices, Misc. Setups, RUT, Support (Demand) - Resistance (Supply). Bookmark the permalink.

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