Russell 2000 - Shorting setup

The Russell 2000, index for small cap stocks is providing us an ideal setup. IT presents us with two possible entries to go short this index.

• We go short if the price advances upward to resistance at $733.10 and it appears that resistance is holding… then we go short
• The other entry is if the prices continues to decline and it fails the trend line and 38% Fibanocci level. The Fibanocci intersects with the trend line and creates a very strong support level, should that level fail then we can expect to see this index to decline to $580.

We will short the Russell 2000 by utilizing the Proshares Ultra Short ETF. The symbol is SKK. Going long on the SKK actually pays 2x for declines on the Russell 2000.