RUT: 350 in the bag, do I hear 325?

As I posted yesterday, the RUT was poised and full of momentum to continue it's move down. Our first target from REALLY OLD price levels was 350 which it hit today, the next level would be the 325 area.

The further we move down this week, the better I like the probabilities of a relief bounce. I covered some of my open short positions today as I hit my RUT target and I don't want to be a pig. I am still long term bearish, but I will be patient now for a bounce or rally that will give me the opportunity for a low risk entry at a resistance level. That may take some time, but the wait will be worth the better probabilities.

I've posted a couple charts to take a look at some other potential downside targets/support areas. I had to use a monthly to go back far enough to fit the Fibonacci levels and 1994 price support areas.

Notice on the Monthly Chart how the 423% fib is at the same place as the 94 resistance level of 267. I sounds surreal to suggest that the RUT could hit 267, but I would have thought the same about 350 two months ago and we are there (350) today. It may support here, but there's really nothing to support until 267 with the exception of 300 where it supported for one month in 1996.

I'm not saying that we're going there, but since we're at 350 and we're STILL in a downtrend, then we need to start looking for the next targets.

RUT Monthly Chart:




RUT Daily Chart: