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[spielchekr]

I can't tell you the last time it ever touched this band, let alone busted through, because Stockcharts 60min data only goes back to 2002 (trust me, those other sticks from days past are not touching). The last time RUT even just skidded above (without even touching) this band was May 2002, after which price never even got back to the rollover level of that lower band before the next leg down.

MACD still has a huge unresolved negative divergence, although it's very thinly populated (I'd love to hear ideas about what that means). We closed Friday below the two 38.6%'s shown. The top band is off the chart but has turned down now, deducing from the BB width indicator.

But foundational support is just 10 points below here and is very obvious to all by now. To be a bull is to trust the very obvious without fail, without question, each and every time, no matter what's different about it. That conviction has served bulls in an admirable fashion. I'm certain they will see things as in fact being no different this time. But this looks like one dangerous sucker.



breadths and summations

Edited by spielchekr, 27 July 2007 - 09:21 PM.

[vulture]

On another note, it makes me wonder what percentage of the 2000 component stocks in this index were riding the "private equity" wave. The conventional wisdom was that interest rates upticking would slam these stocks, but as we saw, the index churned sideways to higher during that quick break in bonds a month or so ago. It wasnt until the crowd finally acted on this bad debt scenario that the Russell finally had its own "mini crash" this past week.