Russell 2000: Dealing with Friday's gap openingSmall-cap stocks collapsed Friday, gapping lower on the opening and never looking back. In the end, the Russell 2000 (NYSE: IWM) closed down 19.54, or 2.77% at 686.18, the third-largest point decline of the year. In today’s trading, chart support comes in at 683, 680 and 675. A breach of the latter could see a support “vacuum” down to 660 toward the 2008 bottom of 650. Meanwhile, resistance is pegged at 694, 701 and 712. This week is a huge one for economic data, and things start off with a bang this morning as the market will react to the ISM Manufacturing Survey at 10:00 a.m. ET and throughout the day to various vehicle sales numbers.
Russell 2000: Initial support nearbyThe Russell 2000 (NYSE: IWM) gapped lower on the opening Wednesday and never looked back, sinking to 775.96 by the close to meet an initial technical downside target on the failure of 800. Be on the lookout Thursday morning for any fireworks from Fed Chair Bernanke’s JEC testimony. Initial support on an extension of the slide is nearby at 775 and 771; then we could see a vacuum of buyers down toward the crucial 760 zone. On a bounce, 784.50 is the first key test, and as always, 800 is the big level if the market mounts a big recovery move Thursday. spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer
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