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Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 22, 2014

The “Santa Claus” rally continued Friday as prices floated higher during a “Quad-Witch” Options Expiration. Likely fueled by Short Sellers trapped following the apparent December 16 classic capitulation low. Prices can very well continue higher into the yearend, but further price extension will result in extreme overbought conditions and increase the probability of a sharper/deeper […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 19, 2014

After Wednesday’s tremendous FOMC/Cuba induced rally, we had suggested that a pause to digest gains was in order. Financial markets though otherwise. Often following FOMC announcements, the true market sentiment is observed after large Funds/Money Managers have had time to process the information overnight and make asset allocation decisions the following session. In this case, […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 18, 2014

Over the past two session’s we noted that equity indices (including RUT) were becoming very oversold and a reflex rebound was imminent. In fact we stated that extreme oversold conditions such as yesterday only occur several times a year. It appears the planets aligned with a sanguine FOMC announcement and the surprise Cuba normalization ignite […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 17, 2014

An early oversold reflex bounce failed once again at overhead resistance (as anticipated in yesterday’s commentary) to end with a rather bearish “Hammer” pattern. Normally prices would be expected to follow thru lower very quickly. However, prices are now even more oversold and at extreme levels only seen several times a year. Eventually a strong […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 16, 2014

Buyers remained sidelined with the normally resilient 200 Day Moving Average succumbing to further selling and a resolution of a defined volatility pattern lower with the violation of the pattern’s lower boundary. Technical damage cannot be ignored –BUT– multiple short term indicators are extremely oversold and a reflexive rebound is expected at any time. Large […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 15, 2014

After the inability of RUT to maintain early gains and the resulting “Gravestone Doji” pattern at the end of Thursday’s, battered and bruised Buyers retreated to the sidelines as Sellers overwhelmed. In fact the selling may have been exhaustive as RUT has returned to the 200 Day Moving Average and the lower boundary of a […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 12, 2014

After a retrace of Tuesday’s strong snapback rebound and retest of the Weekly Implied Volatility Band support area, RUT bounced once again. However the early gains were short lived and Sellers stepped up to see prices close at the lows of the day. The resulting ominous “Gravestone Doji” pattern projects lower prices ahead and another […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 11, 2014

In Wednesday’s pre-market commentary it was anticipated that RUT would retrace a portion of Tuesday’s massive rally. The RUT weakness was a bit more than expected probability to the extreme selling in the other primary indices and intensified by the unwind of futures contracts ahead of Thursday’s “rollover”. The selling was so extreme in the […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 10, 2014

Tuesday’s session offered extraordinary profit opportunities as RUT rebounded after prices extended lower into the price zone discussed in yesterday’s commentary. This makes for a very good object lesson as extremely high probability entries such as this occur 2 to 3 times every quarter. It is highly recommend to review Tuesday’s pre-market commentary for future […]

Russell 2000 Daily Chart with Current Implied Volatility Band Levels for Dec. 9, 2014

Sellers were is control Monday as RUT failed to sustain a rally after a “Gap Down” open to end the session near the lows of the day. As noted yesterday, Thursday’s index futures “Rollover” could be exacerbating the selling. The short term technical damage (see chart above) cannot be ignored with further lower prices expected. […]