RUT: Taking a Look at the Hourly

The general bias is down on the RUT (lower high, lower low), but it did hold the important 440 level we talked about last week.

Tomorrow will be important to see if it can follow through or if it's ready to fall apart some more.

I posted a 60m chart of the RUT because it gives a bit of a different picture then looking just at the dailies. First thing to note is the direction of the 20MA which is down, also notice the fibs I put on and where it resisted today...a 38.2 retracement.

While today closed positive I want to keep in mind that it just had a strong 2 day drop and a relief bounce was probable and some point and would likely retrace to 38.2% or 50%. We got the 38.2% and now I need to watch the price action tomorrow it see if the move continues to retrace up to 50% or 61.8% levels or if it's just going to roll over.

I have no bias what it will do tomorrow, but know the levels it is likely to target. The 440 area will be key again to hold for the bulls to have a chance to push it back up again.

On the upside I have the following targets / resistance:

- 455.78: 50% fib
- 460.18: 61.8% fib
- 474.42: 100% fib retrace

On the downside I have the following targets / support:

- 431.51: 100% retrace of last mini-rally
- 405.05: 161% retrace of last mini-rally
- 362.22: 261.8% retrace of last mini-rally

That covers a range of almost 100 points so we should be able to stay in that range on Tuesday.

RUT Hourly Chart (Bull upside fibs)



RUT Hourly Chart (Bear downside fibs)