RUT: Pullback

The RUT had an extremely bullish morning session moving straight up to the 490 area where it tapped the R1 pivot. It continued to fall hard the rest of the day where it closed near it's lows at 465. This close was also near yesterday's lows.

As I mentioned in yesterday's post, 474 was an important level to hold. Today's price action created an ugly topping tail candle at the old November resistance levels near 490. The RUT may now be in a position to pull back a bit more to retest the neckline of our reverse head and shoulders. If it tests and holds it's starts looking very bullish for the short term.

The 8MA and 20MA on the daily chart are starting to level out and go sideways which may invite some whippy action above and below those MA levels. The chart shows how the 450 support level near the 20MA may be the first downside target tomorrow if the day turns out to be bearish follow through. If the RUT moves up, it will first need to clear that 474 area again.

RUT Daily Chart: