Shared the chart below on dshort.com yesterday (see post here), reflecting a repeating pattern looks to be continuing in the Russell 2000 index.
CLICK ON CHART TO ENLARGE
The “Power of the Pattern“ suggests that aggressive investors would want to acquire inverse Russell 2000 positions (RWM) as close to the 750 level as possible. Yesterday the Russell 2000 traded as high as 745.76, getting within 1% of the key 750 level.
Yesterday I shared that shorting as close to 750 as possible is a good idea as to limit losses should the Russell break this pattern. One would want to close the short position on a break above this key resistance line. Will see if todays gains in RWM will continue…
