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Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Jan. 14, 2015

01-14-15 RUT Daily Chart

Another extremely good session for buying weakness/selling strength as RUT opens higher and probes deep into Implied Volatility Band resistance to stall precisely at an Emptus sell signal. After the first hour session high, prices declined until late into the afternoon session where Buyers stepped back in to end the session will marginal gains.

Violation of Monday's lows was concerning (hence the greater selling than normal once broken), but the late session recovery reflects Buyers interest at lower prices. Resolution of a defined "Wide Range Doji" pattern along with a breakaway from a confluent cluster of moving averages will determine the direction of the next durable trend. Caution is slightly warranted as the likelihood a "Trend" session (a one direction intraday trend closing at the high or low of the session) is elevated. Continue consider buying weakness or selling strength with an emphasis on the morning session if internals are within normal levels.

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