Chart Notes

Russell 2000 Hits Support Zone

October 1, 2014

We went SHORT the Russell 2000 via TWM on September 16, 2014.

As of today we are up 10.54% on the trade.

But today the index hit a support level that has held three times over the last twelve months: December 2013, February 2014 and May 2014 (see chart below).

We could be near the end of the sell-off if this support level ($108.00 for IWM) holds once again. If not, the next support level is down at $106.00 for IWM, which equates to a further 2% downward move for the index.

We watch and wait.