![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheEY5R4ItLkMeIQzepgpt9jVNQnDrlZhUqG-NJb9MPm8JZXJnCjbGM81zhPTPjnrFN9kELWEWSak4Y1MBfp_BdTuJtE3P6wwj1rfWeDWVTMUxCBbaY0GaOYNPl_76qWrBDq00oiTAyIGzP/s400/rusesell+2000.gif)
The importance of such technical patterns is in the measuring objective it implies. It warns of potential of another 4%-5% decline toward 1000-1020.
The 38.2% retracment objective of the rally since November 2012 is found just above the measuring objective at 1041-1042. The 50% retracement is just below 989. There have been bearish divergences in the weekly RSIs for the entire year, so may not be significant that it has now fallen to three-year lows. The MACDs also show this bearish divergence this year and it too is at three-year lows.
Great Graphic: Russell 2000 Falling Through Neck Line
Reviewed by Marc Chandler
on
October 10, 2014
Rating:
![Great Graphic: Russell 2000 Falling Through Neck Line](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEheEY5R4ItLkMeIQzepgpt9jVNQnDrlZhUqG-NJb9MPm8JZXJnCjbGM81zhPTPjnrFN9kELWEWSak4Y1MBfp_BdTuJtE3P6wwj1rfWeDWVTMUxCBbaY0GaOYNPl_76qWrBDq00oiTAyIGzP/s72-c/rusesell+2000.gif)