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content.screencast.com/use.../RUT22814.jpg

We'll go with a rising wedge breakdown in progress on the RUT hourly chart. 61.8 retrace would give you a first target of 1125, the 2/13 low.

Comments

DinkDink
Here's the way I see it. I agree with the bearish prediction, but not because of the wedge. Rising wedges that are drawn with the starting point at a major prior intermediate-swing low are highly unreliable. They are unreliable because rising wedges are usually only bearish at the end of major trends. If you started your rising wedge from say the Feb 19 low, I think it would make more sense. Better yet, maybe draw a channel instead of a wedge. This is why so many wedge patterns that start at major bottoms fail, because a rising wedge is not really a bearish wedge unless it is occurring at the end of a major move. Think back to all those charts that drew rising wedges from the 2009 low that ultimately failed. They failed because the 2009 low was the start of a major uptrends and drawing a wedge from that low was inappropriate. 2/28/14
BoraBoraBoraBora
bottom ticked it REV 2/28/14
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