The penetration of the triangle uptrend line last week was the trigger that initiated a move in the major averages back down near last month’s “flash” lows; in fact, the Russell 2000 index has dropped below its August low.
These charts have not looked healthy since the horizontal support lines were broken and now it looks like the attempt at a bounce and a “V” shaped bottom has failed and the indices are headed lower. What is particularly worrisome, with just two trading days left in September, is the trend line break on the monthly chart and the bearish MacD crossover.
