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This is a syndicated repost courtesy of Slope of Hope. To view original, click here. Reposted with permission.

Allow me to point out an interesting reversal pattern on the Russell 2000 futures (/RTY). That stupid end-of-day run-up was actually the picture-perfect bounce toward the resistance line.

Here is a closer look; there’s room for it to push a little higher, if it has some kind of point it wants to make.

Here’s the thing, though. The market was already insanely overvalued on November 1st. For it to run TWENTY PERCENT HIGHER IN A WEEK is vomit-inducing on a scale that my words cannot characterize. Stupid, stupid, stupid. So I’m glad to see a tiny, tiny dose of sanity creep back in.

I have 40 short positions at about a 140% commitment level.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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