Wednesday, July 23, 2014

Russell 2000 Aims for 10-Week EMA

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Last week I wrote about the oversold condition with the Russell 2000 and this index rallied from the Thursday low as expected.  The Russell 2000 has found support at its 40-week ema and is approaching resistance at its 10-week ema.

The Russell 2000 appears to be stalling here as volume today was quite light and buyers were unable to re-claim the 10-week ema.  While this index is still very near oversold conditions, it is quite possible for last week's lows to be revisted in order to test the conviction of the bulls who bought the dip last week.