The 180 minute chart of the Russell 2000 index is in the lower right hand corner. It closed on its lows Friday, a nasty looking chart. It also took out its March 8th lows. Not good. Now look at the other three charts, neither the Dow, the S&P nor the Nasdaq 100 took out their March 8th lows.
This is a Weekly chart of all four indexes with their 2018 highs. Once again the Russell is leading the pack, having peaked the week August 27, versus the week of October 1st for the rest. A one month head start on the debacle decline into the end of the year. I've labeled the Oct 1st bar on the Russell to point out where it was as the other indexes peaked. Also, compare the most recent bars of each index, once again the Russell stands out.
Finally, the Daily chart for another comparison of the March 8th lows in relation to the closing prices on Friday. Only the Russell made a new March low.
These three charts suggest that we pay close attention to the Russell whenever there is a divergence between these three major market indexes. With the Russell making new March lows on Friday, next week is pointing down. Unless there is a major reversal on Monday, expect new short trades as the week unfolds.
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