There are probably months of declines ahead.

Small caps are not showing the strength needed to break out of the downtrend. As of now small caps are the weakest of the major U.S. indexes

Small caps have strong resistance at the 1160-1180 level. They closed at RUT 1165.36 this week.

Downtrends end only when extremes of fear are reached. That has not yet happened.

The SPX rose this week but remains well below its old rising trend support line and will be expected to act as strong resistance .

SPX remains in a downtrend in this chart and I am looking for another leg down.

The initial selloff in August was so fierce that reaching a final bottom in only five days of selling seems unlikely.

big caps and especially technology stocks are rallying, small caps remains below resistance at RUT 1180,

The current rally in small caps has not yet broken above the prior September rally highs.

RUT closed slightly above its declining 50-day moving average line this week.

Gold stocks rallied, broke above their 50-day moving average line, and closed slightly above their old 2008 bear market lows.

Small caps remain within their sideways trading pattern, with RUT 1180 as resistance and RUT 1140 as support.

Wednesday's fed inspired rally pushed small caps up to the RUT 1180 resistance level, but they promptly fell back into their trading range.

without small caps being at least part of the bullish picture, there is a small black cloud over the rally's fireworks.

For three weeks gold stocks attempted to breakout above their 2008 bear market lows but have failed. The short term advance has reversed.

For the week, gold stock prices lost almost nine percent.

On Wednesday the Federal Reserve left its benchmark short-term interest rate near zero but signaled that a rate hike is still on the table

In their statement, the Fed recognized that job gains had slowed, but that economic growth, though moderate, continued.

With the Fed back on track to raise shortterm rates the stock market, liking security, stability and knowledge of what is to occur, rallied.

Last week the U.S dollar posted a breakout above the declining trend resistance line