Russell index is weak and trending down due to interest rates; likely to bounce and fall again rather than reach new highs.

The reason for this depends on the charts that I will show you while looking at FEZ, XRT and the Russell indicator.

Let's look at Russell's index here; that tells a completely different story. The Russell index is much weaker. Hmm, some people are asking me why the Russell index is so weak, and why it is declining so sharply during this period.

It is trading at approximately 2830, after hitting a high of 230 points. This means a decrease of about 8% currently, or even more. Here you can see how the reversals turned downwards, which was a warning on the weekly chart.

Here the indicator dropped and gave you a false signal (whipsaw) at that point where it turned positive. I would call this a sharp oscillation (whipsaw) in the peak area that you see here.

So you can see the big course right there. It indicates that this bottom will be reached in mid-September. However, when I look at the daily chart here, I'm not sure it has bottomed out yet.

The distance it has fallen is very large, so it makes sense that it will require a lot of energy to get to the resistance zone here, energy that is unlikely to be available to get back to the middle of the road at 2950, unless interest rates start to fall very sharply.

The Russell index is moving downwards due to the interest rate situation. If 10-year bond yields reach 5%, more than a third of Russell's companies with variable-rate debt will actually suffer profits.

A large portion of Russell's shares are losing money anyway. So, this is a bad situation for small-capital companies, and this is the reason for what you are seeing now.

Also, you can see the value of the Slim Ribbon PPO indicator here, where you got the negative signal.

That was exactly what he was here to tell you about the resumption of the landing. You can see the Option Bias Indicator here. It was exactly here that the Options Bias indicator said: "No more long positions in Russell."

It's time to shift your options positions towards the sell side.

So, when I look at Russell and look at the timing here, there is a good chance on this weekly chart that there is another cycle where the index tries to bounce back and then falls again.

This does not strongly support the hypothesis of a major rebound or reaching new highs for the stock market at the moment, given this divergence in the indicators.

Then on the ninth and fifteenth, the IWM and DIA ratings dropped slightly downward. However, the IWM and Diamonds indices are still in a downward trend.