The Russell 2000 has rallied 13.87% from its lows of 342.59 on March 9, 009. It closed today at 390.12. I would expect to see this move reach resistance at around 415 on the Russell 2000. This move would be another 6.4% on the upside.
There is still a good chance that we will see either a 50% retracement of the move off the lows or a retest of the lows set on March 9, 2009. I would prefer to see one more retest of the lows. If that retest were to happen we would then see a better opportunity to go back to the January highs of 519 on the Russell 2000.
It's hard to say how far down we go once this rally falters but it will offer a tremendous buying opportunity when we bottom.
$87.65 (02/23/09)
