RUT: Up to 430 Resistance Area

The RUT was up 8.40% today to the 430 resistance area it's been targeting for the last 2 weeks -- basically straight up. This is what happens in some cases when the rubber-band gets stretched in one direction.

The downtrend that accelerated in mid Feb when it broke 433 moved down for 15 days before doing an "about-face" and marching up in this current relief rally.

The bulls were pretty convincing today getting it all the way back up to 433 which was the "flood-gate" level that got the smack-down on that last move down.

Notice that the price moved up through all the downtrending moving averages, 8, 20 and 50 MAs. If 430 holds then my next upside target would be 450 and 470. There's now resistance between 450 and 470, so when it breaks 450 look for a quick move up to 470. The RUT moved up very quickly today from 420 to 433 for the same reason, very little price resistance on the daily chart.

I wouldn't be surprised to see the RUT trade in a range between 340 and 520 for the next few weeks. The bulls got this one today, but where there are quick moves up there are often quick moves down to counter. Keep on your toes.

RUT Daily Chart: