Where Is The Market Heading?
January 18, 2011 12:53 pm
Often the question about the trend of the market is asked. How do you know and what is the breaking points. Today such a question was asked in relation to the Russell 2000 Small Cap Index. Notice on the charts below that each market is still much higher than the support levels. For the R200, the short-term trend will show a break below 779.62 and a more important support will be eliminated at 762.95. In addition, the 20-day MA and 50-day MA are both sloping up.
Now, even as this can serve as a general guide, it is by no way an absolute. External shocks are possible and investor sentiment can change quickly.
For now though, it appears that the green light is on…..