RUT: Looking at the Hourly

The RUT is now on it's fifth leg and is getting extremely over-extended from the 50MA on the 60 min chart.

The trend is still up and there are still no signs of a reversal so if the short term trend is still moving up then the bias is still UP.

My belief is that most short term trend moves are 3 to 5 legs.

After 5 legs, the probabilities of another leg(s) start to diminish. This is just a statement about probabilities but I am not saying that the trend is over yet. Until there is some signs of reversal and confirmation the trend is still up.

The price is now well above the 200MA on the hourly and is also above the 50, 20 and 10MA. If you look at the chart you'll see that the 8MA and 20MA are frequently retested so don't be surprised to see a pull back to the 430 area in the next day or two.

There is some overhead resistance around 455 and then some more at 470. Notice to the left that there is little price resistance to keep it from moving up there quickly.

RUT Hourly Chart: