This centerline is again amazing me (use the 5 min Russell 2000 image below to see this).
Today the market tanked down over 2% and then paused for about an hour right over the centerline (green zone in the image below), But what was support, quickly became resistance as … in a flash prices rocketed through the line and paused immediately on the other side.
Now over the past hour it has attempted twice to get back above the line with little success as it fell below it again. This resistance should prove to push the market lower at least in the short term.
This push/pull anomaly of the centerline is quite interesting to watch. It intrigues me that price REALLY does not want to be in the centerline ‘zone’, so it quickly bolts through it (see the second image for a zoomed in view). As you know … a few days ago, prices bounced off of it and today it pushed through immediately to the other side.
This is a good example at how technical analysis can provide subtle clues as to the future direction.
fascinating stuff for a technical analysis geek like myself 🙂