The Russell 2000 Is Now Almost Oversold, Time To Re-Enter?

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About: Direxion Daily Small Cap Bull 3x Shares ETF (TNA), Includes: IWM, SPY
by: Todd Akin
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Todd Akin
Deep Value, newsletter provider, portfolio strategy, oil & gas
Summary

TNA is nearing oversold, moving averages are coming in to act as support, and the five-day down rule is now in effect.

More selling exhaustion is needed for prime buying conditions, which may be anticipated by traders and cause the market to bounce early, forming a higher high and a higher low.

These technical developments should be signaling the start of a new uptrend, barring some new bearish data developing, as the U.S. economy remains strong at 2.6% GDP.

As a result, I remain long TNA.

The Direxion Daily Small Cap Bull 3x Shares ETF (NYSEARCA:TNA), which leverages the Russell 2000 (NYSEARCA:IWM) parent index, was up around 90% from its lows, while the IWM, equivalently, was up