Taipan Financial News Chart of the Day

A New Beginning for Small Caps?
by Ann Sosnowski, Editor, WaveStrength Trader
October 9, 2006

The Russell 2000 (RUT) took a big dip in May 2006, dropping below the 200-day moving average and trading flat for three months.

Now, the small-cap index is on the move again, taking price slowly but surely above the 200-day moving average support after bouncing from the strong historic support of RUT 675.

Currently at 735, these small companies are beginning to retrace the awful price fall from May of this year, consisting of 10 consecutive days of strong selling.

Led by such terrific performers like Pozen Inc. (POZN:NASDAQ) and Viropharma Inc. (VPHM:NASDAQ) in the healthcare industry and semiconductor companies like Sigma Designs Inc. (SIGM:NASDAQ), the RUT could see 784.62 again in the next three months, pushing toward a historic high near RUT 800.

For more from Ann and the WaveStrength Trader team, including the easy 2-step system to turn $1000 into $11,500 for you, check out our special report on options made simple.

Copyright 2006, The Taipan Group, LLC and Dynamic Market Alert, 808 St. Paul St., Baltimore, MD 21201
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Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed.