Not much to be said other then the 6 day rally ending with a topping tail that was giving us a pretty strong indication that the momentum was fading. Today the sellers showed up at every intraday resistance level to keep taking it down. It was a really good text book example of how old support became new resistance. (See chart below)
RUT 5Min Chart: Intraday support became new resistance
On the Bullish side, this pull back today was only about a 30% retracement on the big 6 day rally, so in the scheme of things this might even end up being healthy for a bigger more up. My bias is slightly bearish for the short term given the engulfing pattern today, but I'm looking for the RUT to support first at 687.50 if it pulls back tomorrow.
On the Bearish side, I see that it could fall some more, but there seems to be some support that should find some buyers 695 area. If it closes below 690 and buyers don't step in at that level then it could be setting up for another leg down. Anythig can happen, but I really see today as more of a much needed pull back rather then the start of new downward movement. Tomorrow will give us another piece of the puzzle.
RUT Daily Chart:
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