This is a chart of the IWMS -- the ETF that tracks the Russell 2000. It's a great proxy for the market's risk appetite in equities. This is a multi-year chart in weekly increments. Notice the following:
-- Prices clearly broke their multi-year uptrend that started in 2004
-- Prices have revolved around the 200 week SMA since the beginning of this year. However, prices are now below the 200 week SMA
-- Prices have bounced off the 38.2% Fibonacci level several times over the last year.
-- The weekly SMA picture is cloudy. They are bunched together with the averages within a few points of each other and the SMAs moving in different directions
This is a multi-year chart in weekly increments
Notice the following:
-- There are three primary trend lines. The QQQQs have broken through two: the upper trend line of the multi-year trading channel and the upward sloping trend line that started in mid-2006
-- Prices are now heading for the lower trend line of the multi-year upward sloping channel
-- Prices have just moved below the 200 day SMA.
