RUT: Tiring

The RUT closed lower today, but is still holding the 20MA on the daily chart. This still has to been seen as mildly bullish since the higher highs and higher lows are still intact.

Yesterday I did point out that this is the third leg of the relief rally, and in the intermediate downtrend we find ourselves in, three may be all we get. A normal rally would be three to five legs so with the negative sentiment it will likely be three to five. We'll have to see.

Just from a pure visual glance at the charts I see the path of least resistance being 440 on the daily charts. Even if the RUT is going to move up higher it makes more sense to me that it will need to produce a bigger pull back in order to get some strength.

At present, 460 is the area that needs to hold to keep the bullish bias intact as that's the area of Monday's lows.

RUT Daily Chart: