Small Caps this week really took a beating Wednesday and Thursday, and Friday wasn’t a whole lot better. So where does this leave us? I was doing some fine tooth investigation work on this index and decided to look a little closer to the movement by jumping into the 60 minute chart. This is like zooming in on the Daily chart with a microscope to see just how volatile it is or could be. What I found by zooming is that since December 27th, the small cap has bounced off or near $660.97 six times and each time buyers returned to drive prices higher. The overall volume is just slightly above average, which is good, but some of the negatives are the RSI has fallen below 50 and the MACD is falling.
Conclusion if we print a red flag Monday, I will likely pull my S money out and retreat to safety. I said likely because if we are holding $660.97 or above by 11:30am, I might just stay in. I’m getting a lot of crossed signals at the moment but I know time will clear it all up. If we are red and below $660.97 Monday, the call is easy. Bailout!
Charts below are Daily first and the zoomed in hourly chart. Pretty easy to see on the hourly.
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