Technical AnalysisSince Nov lows, small caps ruleLooking for a silver lining? Check out this: The Dow is 5.3% above the November lows, while the Russell 2000 is up 20.8% from its November lows. Happy New YearThe Russell 2000 notched the first weekly advance of the New Year this past week, marking the third-best weekly gain since the bear market collapse began back in mid-September. Russell 2000 swingline remains at 450Forget about January; stay focused on 450. Friday bounce a hollow victoryEven with a bounce off 7-week lows, the Russell 2000 still generated the second lowest close in more than five years on weekly studies. Body blow or head fake?Was the breach of 450 in the Russell 2000 the first body blow to value investors, or a "head fake" slide that served up a buying opportunity? Troubling start to New YearThe powerful Friday breach of 491 in the Russell 2000 was a troubling development, and the dip through minor short-term support at 484 didn’t help things, either. Russell 2000: Look for opportunities, not trendsThe coming year is likely to be more of a “trader’s market” than a strong trending rally market. That’s not a style of investing that today’s money managers are all that familiar with. Consolidation process still in play; waiting for a breakout moveThis week saw the tightest range in the Russell 2000 since before the whole collapse kicked into gear back in mid-September. Baby stepsYes, we are still in a bear market. No, we are nowhere near putting an official end to that bear market. But I find minor solace in tiny shifts of price action on the Russell 2000 charts lately Boring = Breakout?Sometimes boring is good. But tight ranges have an unnerving way of coiling the market into a violent breakout move. Investing 101Technical Analysis: Using the Past to Forecast the FutureDig deeper: technical analysis is an analytical system that looks for buy and sell signals in patterns formed in charts of stock prices.
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