Battleground In the Russell 2000

Watching the tickers flicker all day long is a waste of time.

But if you are, perhaps you should be watching the Russell 2000 (IWM) ETF.

The 80.00 level is what we are focusing on. Traders faded it on the open today after it briefly spiked up yesterday afterhours in conjunction with the Countrywide news. Small cap stocks can be fun to trade, but are also an important proxy for the risk appetite.

The 80 level on the IWM might prove to be stiff resistance, however. The 200-day moving average and resistance levels etched out over the past few weeks come into play. But if we can bust through there it could get interesting, and quickly.

It seems unlikely, but this tape seems to constantly spring surprises. A rally in the tiny tykes might just be what bruised and battered bulls could use.

Along with a little sunshine on the east coast. Here comes the sun, which seemed to hibernate nearly as long as Angelo Mozilo did. He looked a little pasty, perhaps the depth of his tan is inversely correlated with this stock.

Hopefully you find that more thought provoking than Barton Biggs call on CNBC. He thinks there is a 50/50 chance that we see new highs in September. What are we supposed to do with that, Barton? He thinks the lows are in, however. We were rarely on the same page with him in the past, but tend to agree with that one.

Ready for the weekend yet?

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