October isn’t generally a good month for stocks. The US ‘small cap’ index of the Russell 2000 is often regarded as the proverbial ‘canary in the coal mine’ and has been giving some warning signals over recent sessions. One wonders if it might be about to fall off its perch!

RUT: Russell 2000 weekly: the 1,100 has been key here and price managed to scrape back above this level to close out last week. The index is back below this level again though now and also below the 1,080 level too which is bearish. I would still want to a weekly candle close below this level to confirm a bearish breakdown:

RUT: Russell 2000 daily: putting fib levels on the most recent bull run shows that a 61.8% fib pull back would bring price down to the monthly support trend line near the 940 level. Any weekly close below the 1,100 level would suggest a move to this 61.8% fib and monthly trend line support: 

Summary: watch for any weekly close below the 1,100 level to suggest a target down near 940.