The 3 Week trend is down, and the charts seem to still be pointing toward a short term bias to the downside. The evidence is a lower high and lower low on the daily.
I'm eying 690 as my first target to the downside. Although my bias is down, I still have some positions open for September to take advantage of an expire week rally in the 730 to 740 area if the bulltards decide to take it there. It are times like these when it feels like the market is going to fall off a cliff that the bulls can come in with surprise buying spree to the upside. The short covering provides a steep move up very similar to what we saw in July and early August.
In summary, we're in the 700 - 740 chop zone so be prepared for a 40-50 point move in either direction the next 5 days. (keep in mind there was an intraday swing yesterday of 30 points)
RUT Daily Chart:
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