In the middle of August the Russell 2000 broke out of a 2 month consolidation to the upside. It continued to push higher through the end of August. Profit taking the last day of the month was seen as a healthy and digestive move. But in hindsight it has now moved lower ever since that day. Is the Russell 2000 in trouble of rolling over and diving lower?
The chart below suggests that the path of least resistance in the short run indeed may be to the downside. After a retest of the break out area the Russell 2000 ETF (iShares Russell 2000 (NYSE:IWM)) has continued to drop and is now back near the heart of the prior consolidation. This could be a new trend lower. The RSI is falling and now at the lower edge of the bullish zone and the MACD is dropping and about to cross to negative.