A little over a week ago, the Russell 2000 small caps reached escape velocity and were finally able to free themselves from the clutches of a two-year price range. Over the course of the most recent 16 trading hours, most of this “escape” has been erased, but this could still be considered a bullish setup (very bullish, in fact) IF prices stabilize above the Fib and don’t slip below it. On the other hand, a failure of the Fib would represent a failed bullish breakout and suggest we’re simply back into the old range.
