The RUT traded down 5.11 to close at 735.26, but more importantly on the daily charts it broke the upward trendline of the rising wedge confirming the start of a potential breakdown as indicated by this pattern. The 2-3 month target would be 685 for me, but I'd first look for 720 to support in the near term. A break below 715 and it's a pretty clear shot to 685.
It put in a bottoming tail on the daily today, but in a downtrending market I have seen many RUT bottoming tails fail on the daily charts. I'm a big fan of trading bottoming tails and this may actually work, but in markets like this it may be best to wait for confirmation.
RUT Daily Chart:
Posts
No comments:
Post a Comment