Wednesday, November 4, 2009

Russell 2000 Made 5 Waves Down Today

Just a quick note on the Russell 2000 which is lagging the major inidices today. It just made a small 5 wave decline on the 5 minute chart (see attached chart). It may be a fakeout, but it's worth watching to see if the Russell again is telling us it's leading the way and that tops are forming.


adan said...

love these heads up's!


as a side note, may mean something, may mean nothing (to paraphrase another todd, on minyanville) -

steve smith, one of the options profs there, posted his own heads up regarding a huge option purchase for uup :

"...massive call purchase as 105,000 of the November $23 calls were bought at the 15c asking price...."

either somebody knows something (actually a lot more) than i could imagine to know, or that somebody's got more money to gamble than i could also imagine to know ;-)

thanks again todd, sure looks like a confluence of seemingly disparate things happening....

Todd S said...

Oooo, thanks for the UUP (dollar) info. That's always helpful. Should be a fun few hours ahead of us here. The Russell and XLF are very weak right now and the Russell made 5 waves down like I said earlier, so perhaps this is telling us something about what's about to happen after the announcement.

We'll see. Thanks again, Adan.

Gustavo said...

Hello Todd:

I must to say what in this chart I cannot agree with the waves labeled and the movement seems to me impulsive up and corrective down.
Today until now was a victory for the bulls with the metals, currencies and markets going up.
But I don't supose what they can to go (with the exception in gold) to new highs.

Interesting the purchase in calls in UUP, thank you for share Adan, because UUP usually don't move very much and we are in November(too much risk if are calls for 2009).
We'll see one more time...


Todd S said...

Thanks for the comments Gustavo. The Russell 2000 is holding beneath its high after that 5 wave decline, but the Fed announcement gave it a pop rally that makes the decline now look like a 3 wave A-B-C correction.

We'll see as time goes on and structure unfolds.