Just a quick note on a glaring double top.
The $RUT got within $0.07 cents of its previous high back in May 2011. It has currently rolled over on the Sto's and the MACD. This currently looks like a big double top. Maybe its just a brief retest and pullback before going higher. I think with the intense weakness in the US market today, there might be more downside to come.
When I was at the MTA conference in New York in April, 2012 a great floor trader - Chris Cady - talked about the market profile and his line in the sand was the Russell at 822. The Russell has briefly surged up to test the old high but it is currently back below the 822 level. Imagine having the knowledge in April to pick such an interesting level. Late April it tested and failed. July, test and failed. August Test and failed. September finally broke through with serious conviction. Today, we fell back below with serious conviction. Let's see what happens at the 40 week MA in black.
The $TSX is wonderfully resilient here today. The gold stocks held up, even though gold was down. You can look at GDX as an example or $SPTGD for the global gold miners index. There is plenty of negative divergence on the $TSX but so far, its holding up relatively speaking with a small drop of 75 points today.
Greg Schnell, CMT.