Folks, this is a chart of the Russell 2000 since the early 1990's. Three observations can be made.
1) It's the first time we are getting this stretched above the 200 week mov avg.
2) Notice also that we are facing a major resistance level. The last two major tops were in 2000 and 2007.
3) The only time we were this stretched from the 200WMA was only when we were below it. And that was in 2009 !! That's right ! Stretch a rubber band to the extreme one way and it will snap back the opposite way.
So all in all i think we are at the start of quick and nasty fall towards 840 pts on the $RUT, which represents a 20% drop more or less.
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