RUT Question Answered

Yesterday we saw the beginning of a trend break on the 15m charts and today it followed through with some incredibly bullish price action. The RUT blew right through 38.2% level of 786 and went right up through the 50% 800 level before finally settling at 795 for a 21 point gain for the day (2.58%).

Tomorrow's another day and it will be interesting to see if we can follow through to the upside, break through the 200MA at the 805 area and shoot for the 61.8% 813 level. Historically, after a drop below the 200MA there is usually some resistance and a retest of the lows before getting some more strength to break it through to the upside. HOWEVER, in this volatility anything is possible so don't be surprised if he shoot higher tomorrow OR take a turn and fall back to test the lows.

With this volatility any is possible and trend can change very, very quickly so stay alert!

RUT 5 Month / Daily Chart