Princess Gwen here, with a bit of déjà vu. I was looking at a monthly graph of the Russell index, when I realized that it is doing the same thing now that it did in 2008. I've been pointing out the similarities between the Nasdaq now and the Nasdaq from that same period, but it's even closer with the Russell. I'm not sure why, maybe because you don't get the masking effects of the super-tech companies. I think the Russell is a good bellwether for the whole economy, so I've been following it for a while. Notably, it has not reached new highs this year. Once it hit that last high, that was it.
If we follow the same pattern now, the Russell is poised right above the Support that will define the start of the real market drop. When the price breaks support, around 1450, and closes beneath it, I would expect a violent cascade downward. Targets on the downside would be about half its peak value, or around 800, 850ish.
If we follow the same pattern now, the Russell is poised right above the Support that will define the start of the real market drop. When the price breaks support, around 1450, and closes beneath it, I would expect a violent cascade downward. Targets on the downside would be about half its peak value, or around 800, 850ish.