Russell 2000 and Bitcoin Break Support, Pressure Builds on Indices

The Russell 2000 index has broken its support level of $288 and is now on course to test its 200-day moving average. The selling volume was high, but not excessive, suggesting that this move could be a bearish trend continuation rather than a reversal.

Stochastics are oversold, which can stay in place for an extended period during a bear market. However, if the index gets a close above $287, it would set up for a potential tradable bounce and a 'bull trap' could be in play.

The Bitcoin price closed just below its 50-day moving average and is coming under pressure to reverse its summer breakout. A move to 7,250 and a test of the 200-day moving average seems likely if another red candlestick forms.