Russell 2000: Initial support nearby
The Russell 2000 (NYSE: IWM) gapped lower on the opening Wednesday and never looked back, sinking to 775.96 by the close to meet an initial technical downside target on the failure of 800. Be on the lookout Thursday morning for any fireworks from Fed Chair Bernanke’s JEC testimony.
Initial support on an extension of the slide is nearby at 775 and 771; then we could see a vacuum of buyers down toward the crucial 760 zone. On a bounce, 784.50 is the first key test, and as always, 800 is the big level if the market mounts a big recovery move Thursday.
