It seems by all indications that we are heading into a bear market. With raising interest rates, tapering, and shrinking of balance sheets, we will see the Russel take at least a 20% tumble from the current price. The 100MA puts the Russel 2000 at around 1400, and further down on 200MA. A couple of key points:
Only 40% of Russel 2000 are above 50-Day MA.
Only 45% of Russel 2000 are above 50-Day MA.
MACD is crossed and looks bearish.
Fed slowing down its QE.
I was a bit curious why the Russel 2000 took a dip in 2018-2019 with the economy doing so well then. The one thing that I could overlay to make some sense to it was the Federal Funds Rate went up to 2.42%
Even mainstream investors like Jon Najarian has taken short positions in the IWM for February. The economics speak it, the Fed speaks it, the indicators speak it, and now even mainstream economists are accepting there is some market shaking coming.
Comment
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{UPDATE/CORRECTION} I meant to write 40% are trading above 50MA and 60% trading below 50MA
Trade active
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Trade Active: Earnings Season rally will take a back seat to FOMC and economic data.