Saturday, April 19, 2008

Small Caps

The Russell 2000 broke out of the trend channel, indicating that the primary down-trend has weakened.

Expect a test of resistance at 730.

The ratio against the Russell 1000 is moving sideways; upward breakout from the narrow channel would be another positive sign for the market.

Downward breakout, however, remains as likely and would warn of another primary decline.

No comments: