RUT 2 Year Chart

The RUT found a support bounce near the August lows and is trying to inch it's way back up. The RUT is currently just above the 23.6% fib retracement area while the NDX has already climbed to the 50% area. This price action to me shows the relative weakness of the RUT index. Notice too that the RUT has convincingly broken it's uptrend and continues to show weakness. In order to reach the previous highs in the 855 area it will need to retest the back of the upward trendline as well as break through several horizontal resistance areas. The probabilities favor more sideways movement between 735 and 800 in the near term. I've listed a hypothetical unbalanced Iron Condor to give an example of a trade that would offer a good risk reward and limit downside risk. This trade example is for educational purposes only.


RUT 2 Year Chart: