RUT: What a Difference a Day Makes

I was surprised this morning when I got down to my computer and saw DOW futures down over 100 points, but I shouldn't have been. Of course we sold off hard today and I learned the lesson yet again that anything can happen and we ALWAYS have to be prepared for the unexpected.

Yesterday after the close, the RUT was looking good and was above the 30, 50 and 200MA -- very bullish, but after today's sell off the RUT is under ALL of those moving averages again -- bearish.

What concerned me tonight as I was studying he chart was the lack of any price support under today's close. If we continue to fall on Friday the first support level I see is at 789.00, but the next horizontal support area isn't until 770. Notice the GREEN AREA illustrated in the chart below that shows the absence of any price support until 770.

I've posted a few RUT charts with different illustrations to give you some support and resistance ideas.

RUT Daily Chart



RUT Daily Chart with Fib Levels