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Speaking of Support

This is a syndicated repost published with the permission of Slope of Hope – Technical Tools for Traders. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Well, there you have it. As required by federal statute, once the Russell 2000 futures reached their zone of support, boom, the buying started. Let’s take a look at what /RTY has been doing in recent days:

So reading from left to right, you can see the first arrow marks support. After a surge to lifetime highs and a hard fall, the same level is reached again, followed by buying, albeit at a less furious pace. The market weakens and actually punctures support.

In a just and sane universe, the selling would have accelerated at that point, but it didn’t. Instead, the buying resumed, once again, more feebly. And then, when support was breached yet again (and event went a little lower than the time before), the buying kicked in like mad:

Thus, you can see how furiously this level is being defended. I would note that it is holding less effectively each time, and the buying which follows is more muted in each instance. When it breaks, finally, it’ll break hard.

Oh, and on a totally separate note – – unlike Bitcoin, which is holding onto gargantuan overnight gains, gold can’t hold even a modest appreciation in value to save its own life.

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