IWM (representing Rus'2000)
SP'daily5
Trans
Summary
A bearish engulfing candle on the Rus'2000 (see IWM chart), that is probably the most bearish signs out there today. First target would be a daily close <81. If we see 80/79s, then a fast test of the recent 76 low seems likely - equating to sp'1343.
The tranny hit my rough target of 5200, and has put in its second spiky/topping candle in a row. A major down day is expected either tomorrow of Friday.
The sp' daily chart also put in a second spiky candle, and even though it closed a tough higher, that is starting to look like an exhausted multi-week rally.
Key targets
The doomer bears need to see watch for the following. First target, the recent 1398 low, and then the 1343 low. I will note that once we are trading back below 1398, I'll be again confident that my original bearish outlook is still likely correct.
A break of 1343 - which seems more likely AFTER Christmas day, will open up a VERY fast move to the June 1266 low, and I'm guessing that won't hold long, and we'll floor somewhere around 1225./1200 by late January.
With Bernanke now out of the way until next year, things just got a whole lot simpler for the bears. I am quite looking forward to the remainder of the week.
A little more later