Russell 2000: Double bottom on daily charts
The Russell 2000 (NYSE: IWM) left a nice double bottom on daily charts Tuesday amid oversold conditions, but the index still needs to rally back through resistance at 760 to support any kind of short-term bottoming argument. The close Tuesday at 743.27 was still one of the lowest daily settlements in over a year, so all but very long-term bullish investors are likely holding losses.
Looking at Wednesday’s session, the 8:30 a.m. ET Durable Goods report probably won’t spark more than a small ripple for stocks, but the 10:00 ET Home Sales data could usher in some volatility. If the market starts to wobble, it will be critical for these recent lows near 734.40 to hold sway, or risk yet another leg down for the move.
