Watching the Russell, Crude and more Fed Speak

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Our View

The Russell 2000 (RUT) made a high in December at 2097 and traded down to 1904 yesterday. It's down 9.0% from its high while the ES is down 1.43% from its high. The funds have been rotating out of the small caps into the ES since mid-December. I know the ES has sold off this week but it settled at 4790 last Wednesday, so though it has moved down, it's trading at or near the same prices.  

So what does that mean? The first part is that the RTY is oversold and the second part, despite the negative Fed talk and the bonds falling, the ES is still holding above 4750. 

Handelstats Levels

$ES Currently trading 4792. Upside: Hourly close above 4789.50 targets 4795.12 then 1sd 4799.05. Hourly close above there targets 4803, hourly close above

there targets 4809.50, hourly close above there targets 4826 then 2sd 4829.35.

Downside: Hourly close below 4789.25 targets 4777.50, Hourly close below there 

targets settlement 4768.75. Hourly close below there targets 4765.75 then 4764.25, hourly close below there targets 4757.88 then -1sd weekly 4755.36, hourly close below there targets 4749.50, hourly close below there targets -1sd 4738.45. Below there, 4735.25 then 4732.50, hourly close below there targets 4724.25 then 4716.50 then -2sd 4708.15.