Small Caps Break Down; Where's Support?

Tom Bowley
by Tom Bowley,
Co-founder and Chief Market Strategist, EarningsBeats.com

The Russell 2000 fell for the third consecutive week and its 2.70% loss last week fell below its rising 20 week EMA for only the second time in 2017.  It was a significant violation and now this index is staring at key price and moving average support in the 1340-1350 zone:

Note that the rising 50 week SMA is currently at 1349, providing further support in that 1340-1350 area.  If all that support fails, then the next price support level would be the June 2015 top just below 1300.

Happy trading!

Tom

Tom Bowley
About The Author:

Tom was a CPA for 20 years before co-founding Earningsbeat.com. He also joined StockCharts for a stint, hosting SCTV’s flagship show “MarketWatchers LIVE,” providing viewers expert market commentary. Learn More 

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