This has been a very impressive move upwards, particularly on RUT/TF, and I’ve heard a lot of talk that resistance is now irrelevant and that equity indices can now head to the moon without restraint.
As it happens there is an opportunity to test that theory today, and I’m watching what happens here on RUT with great interest & I’m showing why on the third and last charts below.
60min sell signals have fixed on all of ES, TF and RUT here, and ES is in a decent rising channel. The next obvious move is to channel support, currently in the 2229 area. ES Dec 60min chart:
NQ is in a decent rising megaphone, and the next obvious target is megaphone support, currently in the 4810 area. NQ Dec 60min chart:
I posted this rising wedge from the November low on Wednesday morning on RUT, and wedge resistance was tested at the open this morning. We’ll see if that holds today. RUT 60min chart:
RUT is also testing bigger picture resistance here. I drew this wedge on the RUT monthly chart in June talking about upside targets on RUT for the expected wave up that we are still in now. RUT is testing the decent quality wedge resistance that I drew in then. RUT Monthly chart:
We really should see equity indices retrace today or at least stall for a retracement on Monday. We shall see whether RUT will turn here at resistance or not. A break above could be a bearish overthrow of course, but sustained trade over 1400 would likely be a genuine break up over resistance. Everyone have a great weekend 🙂