The Russell 2000, which was selling off while the S&P500 was making new highs, is behaving better and worth watching here as it has turned up before the other indices (see chart).  Whether this is just short covering or a market turn is anyone’s guess.

The Russell is a favorite hedge and short vehicle for many of the big players.   The index is down almost 3 percent on the year and 6.77 percent from its July 1st high.  It sits just below the 61.8 percent Fibo retracement of  the May 15 – July 1 move and November 2012 trendline.   Stay tuned.

(click here if charts are not available)