RUT Levels

On Friday, the RUT broke out of a 6 day downtrend channel to the upside and hit resistance at the 760 area to close at 755. The next upside target once it gets over 760 would be 765 where it will hit both horizontal resistance and the 50% fib level. To the downside, there should be some support at 750 and if it breaks below 750 then 745 may be the first pause before it tests the lows again 737.

RUT 20 Day / 15 Minute Chart:



On the 5 year Weekly chart the RUT has broken the long standing upward channel and is now forming a downward channel on the Weekly Chart. Last week formed a bottoming tail (bullish) on the Weekly chart, but we'll have to see if this weeks price action confirms to the upside. On the weekly chart my upside uber-bullish target would be 800 and my downside uber-bearish target would be 725. On Friday the rally in Homebuilders is what gave the big boost to RUT. The homebuilders were in an extremely oversold area as seen here in this chart. Below you can see that the RUT is near the bottom end of the downward channel and is also in an fairly oversold area.

RUT 5 Year / Weekly Chart: