RUT at Pivotal Juncture

The Russell will be at a pivotal juncture this week as we'll see if it finds support on it's long term uptrend line or if it finally breaks trend and embarks on it's continued downward channel. Currently we have both an uptrend and short term downtrend channel intact as it's been trading in a tighter and tighter pattern. On Thursday and Friday the RUT hit it's head on the downward channel resistance line (Red Circle) and found support on Friday afternoon at the 50MA of the Daily Chart. For Monday and Tuesday we'll want to watch carefully to see if it can hold above the 826 level to keep the uptrend intact. If not, it is very likely that it will fall to the 815 area where it should find both horizontal, fib and trendline support. The past 6 weeks have formed a wedge-like pattern on the daily chart so keep a close eye on the breakout of this pattern.

RUT 1yr Daily Chart



RUT 30day 60m Chart
Here's a close up of the downtrend channel that the RUT has started to form