Wednesday, August 22, 2007


The Russell appears to be getting coiled for a big move. I have no idea whether that move will be up or down however. There are some positive signs however. Note the 2b reversal and the divergences in MACD and RSI. Also notice the 4 up days in a row. Remember the 4 day rule?
here is a post describing the 4 day rule for any who are new to the SMT. I'm watching the reaction high. If the Russell can close above that level then the odds are good that the intermediate trend has turned back up.