RUT: Weakness

The RUT closed lower today and here's what we have on the daily charts:

For the bull arguement:
- Tested and stayed above the 20MA
- Still above the neckline of the reverse head and shoulders

For the bear argument:
- Closed below the short term UP trend line. (green line on chart)
- Closed more then half way down Friday's bullish daily candle

There are two arguments in favor of the bulls AND bears so we have a draw. This brings me to a neutral bias and we'll just have to see if the FOMC meeting tomorrow can tilt it one way or the other.

The 20MA is running sideways which is difficult to trade since it is likly to move across it for a while if we continue to consolidate here. I am still keeping my trades to an intraday basis only as there is no firm direction on the daily charts yet. I will wait to see the 20MA trending before I take any directional trades longer then a day.

Fib wise, it favors the bears since it broke below the 50% area again, so that's one more argument for the bears... we see how tomorrow unfolds. The TF fought hard this afternoon to get back over 450, that will be a key area to hold on the TF tomorrow.

Agressive targets for tomorrow:
Upside: 480
Downside: 430

The more I look at this chart, the weaker it looks to me. Notice that it has been unable to put together more than a one or two day rally for the last 11 sessions. This put together with the second break of that trendline in 3 days is starting to raise the warning flags for me. It will take the bulltards to come in with blinders on to buy aimlessly in order to pump this thing up at this point. It very well may happen, so I'll be ready to jump on that train for as long it's rising. The reverse head and shoulders is still in play for me as long as the price stays above the dotted red line of the downward trend. I have often seen prices test and bounce hard off that line.


RUT Daily Chart: