The daily chart below shows that the price is now closer to the 1920 support zone. This is the last line of defense for buyers, as a break lower gives sellers confidence that sentiment is indeed turning. Sentiment changed yesterday when the Fed’s Bullard (hawk, no vote) admitted he was open to the idea of another 50 bps hike in February and would be open to it at the March meeting. In addition, he likes his position on the greater need for the terminal than anticipated in December 2022. A break below the 1920 support will also turn the moving averages downward and provide a new signal of a trend change. The target for buyers if they manage to hold the line would be the top again in 2030 and the first target for sellers if we see a decline would be 1720. Russell 2000 From the hour chart below we can see that the price was able to break the trend but then went sideways, while the 1920 support saw buyers defend the line. We have seen similar price fluctuations in other markets as neither party is very sure about the future of the economy. We are likely to see some support today unless the Fed speakers sound very unusual today. Russell 2000 On the 1-hour chart, we see recent catalysts and absolute volatility that has persisted in the market for over a week. However, the levels are fixed: break below the 1920 support and we should see sellers enter aggressively, on the other hand, break above the 1970 resistance and we should see a strengthening of the buyers. The tide is turning to the fundamental side. The slowdown in inflation appears to be slowing. Economic activity appears to have picked up again. And the job market is still as strong as the world. Markets feel the Fed needs to do more, and the risk that something will fall apart at some point is growing by the day.