This is the tricky part of trading in a bear market. Despite continued dismal data on current economic conditions the market has no problem completely ignoring it and moving higher and higher in the face of what seems logical. (Seems logical to fall right?)
To make consistent profits we need to trade what the charts are doing and not what we think they will do. Although there was some good resistance at 430, it didn't hold and we hit an intraday high of 476 today. This is where the MAs (Moving Averages) can really help to tell us what's really going on. If the 8MA and 20MA are pointing up, then that's what direction the market is heading. When a move is cooling off it will start to level off, but if it's pointing in one direction the probabilities are to trade in that direction.
An up trend can be characterized as strong when the price is staying above the 8MA.
It's at another area of resistance, but we'll have to see how it reacts tomorrow.
RUT Daily Chart:
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