Russell 2000: Support needed to avoid retest of lows
Small-cap stocks took it on the chin Tuesday amid sobering news from the ISM Non-Manufacturing Survey, which added to recent concerns that the economy has tumbled into recession. In the end, the Russell 2000 (NYSE: IWM) closed down 21.88, or 3.02% at 701.58, notching the largest one-day point decline since the Jan. 22 rate-cut low.
This morning’s 8:30 a.m. ET productivity data could generate some opening volatility, as could speeches during the session from Federal Reserve officials (not to mention any fallout from the Super Tuesday voting results). Look for support on the Russell at 695, then down at 689 and 681. Meanwhile, resistance is at 714 and 727.
