BofA Warns, Big Trouble In Small Caps If This Line Is Crossed

Tyler Durden's picture

US equity price action warns of trouble, BofAML's Macneil Curry warns. Since the start of this year, Tuesdays have consistently resulted in positive returns for US equities; but this week's failure to follow through with that pattern, coupled with the Russell 2000’s first close below the 200-day moving-average since November 2012, warns of trouble ahead.


Indeed, the Russell is dangerously close to completing a 4 month "Head-and-Shoulders Top". A close below 1099 is needed to complete the pattern, exposing significant downside to 1057 (5-year trendline), ahead of 988/975 (Head-and-Shoulders obj.).

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HedgeAccordingly's picture

Big Trouble in Little China? i mean midtown

viahj's picture

if Nov '12 is any indication of anything, it's of a BTFD opportunity for BoAML who is asking you to sell into.

Say What Again's picture

HA-Guy -- how come you are always the first to post?

Sorry, but I will not go to your blog

I try to avoid web sites with a "LIBYA" domain (.ly)


NoDebt's picture

My screen is showing an odd shade of green for this time of day.

AccreditedEYE's picture

Again with the BofA research? Really?! One would almost think that you post this to encourage Bulls on your Bearish website.

It's all good...this will just make the 500th time they look like idiots.

power steering's picture

You going to average down on whole foods?

Fuh Querada's picture

is that a vagina soaked in gasoline and ignited?

JustObserving's picture

Mr Chairman, get busy and put your HFT computers to work on the Ruseell 2000.  Or are they too busy attacking gold and silver?

fonzannoon's picture

I know whenever i see the dow about to tank near the close I jump up and buy it. i presume everyone else did too...

buzzsaw99's picture

in what universe are stocks allowed to fall?

buzzsaw99's picture

in what universe does the fed wish to defend the dollar?

BlindMonkey's picture

It is the same universe where the dude that pulls the rug out from under you hopes that you don't hit your head too hard and die.

HardlyZero's picture

MZZ, QID, and SRTY is good now...bottomed out finally.  

TWTR was the key on Tuesday with huge volume.

Today looks like dead cat bounce for markets.

jomama's picture

because fundamentals matter anymore.

Fuh Querada's picture

Which 200 DMA?
Simple, linearly weighted, exponentially smoothed, Wilder, geometric , triangular or variable?
And why not the 192 or 205 DMAs which take account of vacations and long nights in the bar?

Bunga Bunga's picture

Because all lemmings are watching the 200 DMA.

fonzannoon's picture

the good news is the market can go higher with every stock going lower. that is pretty cool.

Seasmoke's picture

Just like Gold and silver go lower , even though more and more of physical is bought. That also is pretty cool.

PlusTic's picture

3:30pm ramp-up is gettin its fuel ready now...

Kreditanstalt's picture

Yeah, but it's increasingly just machines swapping stocks back and forth to one another, and institutions and funds doing the same.  No value is being created and there can be no real profit unless they can get enough mom-and-pop muppets to buy.

TPTB don't like this.

HardlyZero's picture

Wall Street Channel Stuffing ?   There is so much liquidity in the channels now getting blocked up, the bots migh burn-out their transistors as the melt-up melts-down.


Looks like NBI missed the 3:30 bounce.


Dropping into Friday...if this Ukraine and China thing keeps escalatin' and Putin instigatin' then Friday and Monday may be amazin'.

Wahooo's picture

I mistakenly read your comment as "...just war machines swapping stocks back and forth..."

Sometimes the mistaken is correct.

Yen Cross's picture

  Like one of those Russian TOPOL mobile launchers...

Kreditanstalt's picture

All this worry - and a war threat too - and "The Gold Price" is TOTALLY NON-RESPONSIVE.

Poor Grogman's picture

Don't mention gold.

That dreaded stuff is what's causing the problems in the first place

fonzannoon's picture

the dow shot higher literally as gartman was on cnbc talking about how the market rally failed. The stock market is now a sarcastic guy.

yogibear's picture

Jack Lew and Yellen rush into Obama's office and say we need much more QE or else the system blows up.

Theft Plan #2.

Itchy and Scratchy's picture

Last 3 months : Retail Clients Buying  buying from Institutional Accounts

Same old same old.  Nothing to see here. Move along.

Ghostdog's picture

Big trouble when I start listening to bofa dipshits

HardlyZero's picture

yes.  however 99% of the MSM dips read and follow these lemmings.

Ghostdog's picture

A sucker born every minute, right? Hard to believe with such a good educational system at such affordable prices...

The worst trader's picture

And because ZH posted this the line will not,I repete the line will not be crossed! JY, KH

Itchy and Scratchy's picture

Note to financial advisor: How's my triple levered bull bio-tech startup pre-FDA drug development retirement fund that I bought last month doin'?

bbq on whitehouse lawn's picture

Janet Yellen said something today that seems to be overlooked: "Substantially lower" in reference to the FED balance sheet.
So is that numerically or is that purchasing power.
If it is about numbers and politics then its deflation; if its about power or numbers no one will care about then its inflation and a 70's "Goodtimes" redux, with an "Abenomics" twist.
Can you break the dollar and kill yield?
We will find out.

LibertyBear's picture

Send in the Volume!

scubapro's picture



under 1099, like just now?


BAML has not had the hot hand lately though.

Spungo's picture

Oh fuck! More pinks lines!

Yen Cross's picture

  My chart shows this as the 3rd close below the 200 day average. He must be using exponential. (I'm using simple)

   1114.86 200day simple.

bbq on whitehouse lawn's picture

To make good on all State Fed pentions: 401k, Ira,.... The fedor state must kill yield, pay off debt and debase currency.
If you were a twit with a .gov pension what would you do?

Wahooo's picture

Seriously, how come nobody likes small caps?

NOTaREALmerican's picture

Cue:  Hindenburg Blimp music.

Do DU, do DU, do DU, Do DU, do DU, do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU, Do DU,

Zero guest's picture

How can we have a bear market with all these timely warnnings?


Note: The Dow still within tge confines of the triangle that began in 2000.

NESD's picture

It is hard not to notice that last time the index traded below the 200 MA in Nov 2012 the index quickly recovered and provided solid gains for those who did not buy the doom and gloom arguments.  It is hard not to notice that the billions of funny money the Fed prints are not going into Main Street, it is going into the financial markets.  Looks like another buying opportunity to me.