RSP is at a critical support level but currently weak below its 5-day MA; a bullish reversal requires the MA to flatten.

What I find interesting is the equally weighted S&P 500, right? That is our index; I don't need to tell you the symbol , but the symbol is RSP for many of our viewers. This index has taken a heavy beating .

The S&P 500 is nearly 1% lower than its record high. We have made the calculation and the index is about 5% lower than its peak.

Do you have an opinion on the Russell 2000 (RSP) and what it looks like now that we are heading towards the 200-day moving average? Personally, I think: if the market is at a peak and the RSP falls back, and diversification occurs, then I might want to buy some RSP.

It's actually at an interesting level here, Shawn. If you look at the daily chart of the RSP, you can see that it has been the anchor since the low in April, where the rest of the market also reached a bottom.

And we are testing that anchor now. I consider this an important level to keep an eye on.

So back to the RSP, that is why I call it an interest level. And then we look at the 30-minute timeframe again and see that we have dropped just below this declining 5-day moving average , and there is no reason to buy as long as we remain below it.

But if it were to do something like that in the coming days and we see the 5-day moving average flatten out again, then you would want to place a buy order here with a stop-loss below what eventually becomes the higher low .

So I think it is worth keeping a close eye on this area , especially since it is located at that anchor point. So uh, it has the potential to do something here , but it could be just like Russell , who just keeps dropping to the 200s and the anchor point for this year.

So for example, if we go back to the RSP and look at what I have drawn there, something like this, then I could say: "Okay, we are at this important level on the daily chart." If it holds up here, it could just shoot up.

So maybe I would buy, and I haven't done that yet, but I would think: "Here I can buy a few call options in case the price rises without me."