Joe Friday…This could get very ugly for the Russell 2000!

 

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The Russell 2000 is up against a 14-year resistance line and might have put in a double top. This chart was sent to Premium Members over a week ago, as members were establishing short positions very near all-time highs.

After creating what could be a double top, the following week the Russell created a "weekly engulfing bearish pattern" wiping out a months worth of gains in the small cap index in a week! 

Joe Friday...If the Russell breaks steep rising support line (2), small caps become vulnerable to a large decline.

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Apple hits 30-year resistance line again…Different results???

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Two years ago the "Power of the Pattern" pointed out that Apple was hitting a 30-year channel/resistance line at (1). A few months later, the largest company in the world was worth around 30% less.

Now Apple is hitting a parallel channel line at (2) in the chart above. Could a double top be in play too???

I suspect most feel "it will be different this time!" Stay tuned, this could get interesting for both bulls and bears!

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Real Estate & Home Builders at an inflection point?

 

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Real Estate ETF (IYR) is up almost three times as much as the S&P 500 Year-to-date. This rally has taken IYR up to a falling resistance line, drawn off the 2006 highs. 

The DJ Home Construction Index is rather soft today as it as well is hitting a key resistance line (inset chart). 

A breakout above resistance would be a good sign, as it would be a change from a series of falling highs. We are all aware how important this sector is to most people and the macro economy.

Is Real Estate at a key inflection point? The Power of the Pattern believes it is!

Kimblechartingsolutions.com

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