The day had a few pops to the upside and closed near the highs at 481.38 which is 1.04 away from the 61.8% fib we talked about last Friday. This was today's target.
After 2 days of straight up action, we'll have to see if the uber bullishness continues tomorrow in the AM session or if it's going to need a pull back to muster the energy to go higher.
The neckline on the reverse head and shoulders has now been breached, so our 4 week target to the upside is set at 580. There will likely be some ugly pull backs along the way, but at this point if it holds 450 I'll remain short term bullish.
The price has now been above the 20MA for 2 days and the 8MA has crossed up over the 20MA which is the first time it's done that since early November -- Bullish.
Now that I've seen the reverse head and shoulders set up AND it's confirmed, my bias is much different then it was 2 days ago. Two days ago the price action was screaming bearish as it stayed below the down trending 20MA. Now that it's broken the 20MA and the downtrend line on the daily the momentum has shifted. Only the price will tell us how long this is going to last. For tomorrow I'd like to see it close above 50% of today's candle to keep me interested which would be 474ish. Interesting, there was a late day pull back to 474 that retraced very quickly back up to the 481 area.
RUT Daily Chart:
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