Two short weeks ago I pointed out that, like many indices, RUT was at a critical level of support [see: Bonds New All-Time Lows.] Though we had already turned bearish, there was still the possibility that RUT would pull off one of its trademarked rebounds.
This time it didn’t. In fact, just today it reached another interesting level of support – this time, the .618 Fibonacci retracement of the rise from 943.10 in Feb 2016 to 1742.09 in Sep 2018. Unlike SPX and DJIA, this was the high for RUT (an anomaly which has confounded many who still believe in efficient markets.)
What’s more, this (near) tag is occurring at virtually the same instant that SPX has (nearly) tagged its 2.24 extension – our primary downside target since late last year.
Meaningful, you ask?
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