RUT Weekly

The RUT has now spent 4 weeks consolidating in a range between 470 and 440 as you can see on the weekly chart.

On the daily chart, the wedge has been broken to the downside hinting of some more possible downward movement soon.

Notice the distinct downward angle of the weekly 20MA. For weeks the price has been overextended and has been making it's way back to retest the 20MA.

With the blue 8MA you can see how it trended down and has been consolidating sideways.

Three things can happen from here, each with a 33% chance of happening, more consolidation, a reversal to the upside or a continuation of the trend to the downside.

The break of the daily wedge to the downside gives a slight bias to a continuation of the trend downward, the trend of the 20MA and 50MA supports continued downward motion.

I personally like to trade with the prevailing trend, so I will wait to see which direction confirms out of this consolidation.

RUT Weekly Chart: