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Russell 2000 upside alert!

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We don't talk about the Russell 2000 (RUT) a lot as an index, but today we got an alert that this index was breaking an intermediate-term level of resistance at 482. It's interesting to note that this index never broke it April lows even though the NASDAQ Composite has had a habit breaking lows. This should alert traders that that it might not be the NASDAQ large-cap stocks that attract money, but perhaps a commitment to the smaller cap stocks as represented by the Russell 2000!

Russell 2000 Index Chart - last eleven months.

The Russell 2000 Index (RUT.X) broke what we'd call an intermediate-term downward resistance level this morning near 480 We've added a "confirmation" level of horizontal resistance (thick pink) at 488, which is right at the highs found on 12/11 and 12/12. The big test for this index comes at our long-term downward resistance near 500. This is also very close to the 200-day MA (thin red). We'd expect a move above 500 to get MACD on the above chart above the zero level. At that point anything could happen and a rally in the small-caps could just be starting. Notice how the April lows and horizontal support from that level look to be acting as a support level.

Becton Dickinson Alert!

I don't know when I set the alert for shares of Becton Dickinson (BDX), but it was just triggered at $34.75. Traders looking for a stock to perhaps trade bullishly in might want to take a look at this stock here.

Becton Dickinson Chart - last eleven months.

Evidently I set an upside alert on BDX at $34.75 and now I see why. The stock looks to be breaking out of a nice period of consolidation and trend is up. OK to play here with a stop just below upward trend. If some volume comes into the stock it looks higher. A quick look at a supply/demand chart from Stockcharts.com tells us the stock will give a "triple top buy signal" at $35 and a "spread quadruple top buy signal" at $35. A long-term bullish price objective of $54 (vertical count) has us thinking the stock may be good for at least $5 in the next week.

-Staff Analyst

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