The chart below outlines our trade parameters. We bought $TZA, which will profit on a move lower in the Russell 2000 and it is 3 times leverage. We had an initial push up that started in late July, the recent 3 day pullback ended abruptly this afternoon as the small caps reversed early gains in a wide range bar on heavy volume closing back below its 50 day moving average. This is the fourth distribution day in the last 13 sessions. We have been talking about the small caps lagging the other indices for a while and it looks like we have a possibility, at least in the short term, for the index to roll over. We would suggest being very cautious as far as opening new long positions until we see how things plays out over the next few days. Here is a quick look at the charts. 




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