Chart Book
PUBLISHED : Tuesday, 12 August, 2014, 11:47pm
UPDATED : Wednesday, 13 August, 2014, 9:46am

Chart of the day: Russell 2000 finds it tough at the top

BIO

Nicole Elliott is a technical analyst with 32 years experience of financial analysis working for some of the world’s biggest investment banks. Her key expertise is in foreign exchange, interest rate products, bullion, indices and commodities markets. Nicole is a regular TV commentator on financial markets and has authored books on technical analysis for financial professionals. She has a BSc from the London School of Economics.
 

Three attempts at record highs this year and what looks like a broadening top chart pattern morphing into a triple top around 1,200 points have left the Russell 2000 Index, the broadest measure of corporate America, looking top-heavy. While the 50 and 200-day moving averages have yet to cross, the fact that the index has given up 10 per cent in recent weeks signals that it is in a clear correction mode. A weekly close below key support at the 1,100 level would trigger a death cross of the averages, adding bearish pressure for a longer and more significant drop.

Nicole Elliott is a technical analyst

Share

 

Send to a friend

To forward this article using your default email client (e.g. Outlook), click here.

Enter multiple addresses separated by commas(,)

Related topics

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive