At the time of this post RUT futures were up $5.00 so the next upward target would be that 800 area again. Above that, the 200MA is sitting at 805 which under normal circumstances shoud act as resistance as well. Should we have an uber bullish day tomorrow where caution is thrown to the wind the next stop might be 812 (61.8% fib) and last but not least, above that the 100MA at 823. If we make up that far it will be 35 point day. Keep in mind we had no problem putting in a 30 point range on Friday, so ANYTHING is possible in this market.
If we fall on Monday our first support is a the 10MA at 778 and then we have fib support at 770 and then fib support from the 15m charts at 755. A break below 755 might suggest a retest of the low at 742. That would be a big day down so we'll leave it at that for now.
Volatility is still here, so prepare for anything again.
RUT 1 Year / Daily
RUT 5 Day / 15 Minute Chart
One last chart to look at on the 15m - Despite some potential good news of the Fed stepping in with some cash, the chart here is still showing that on Thursday we broke the 3 1/2 day uptrend and then on Friday the backside of the uptrend was penetrated, but the 15m candle still closed below the uptrend -- the uptrend acted as resistance. It may be insignificant, but I'm going to be watching this trendline again tomorrow for signs of strength or weakness. This chart really shows the lack of support if the RUT were to break below 770. I bring this up, because this is the type of environment were some more bad news (economic or otherwise) can quickly send us back down just as quick as we went up on Friday. Many will have their guard down now expecting that the Fed is stepping in to save the day, but as they're doing this, in the bigger picture it is more of a confirmation that the overall economy is showing weakness which in the longer term may mean weaker earnings and lower prices.
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