Long Term $RUT Chart
A lot to say on this chart, but I'll just make a couple points. You see we have decisively broken out of the large rising wedge from Nov 12' through Jan 14'. Once broken, the wedge was backtested, formed a nice topping structure, and has 1080 as critical support.
RUT has exhibited similar structures over the past 6 years. Most noteably the purple boxes shown in 08' and 11'. Each instance similar obvious horizontal support, that once given way, led to large downside selloffs.
In the current case, we have the added benefit of the large rising wedge formation that has been broken, which should add further bearishness to the forecast. With a break of the 1080 level, RUT should see a move to anywhere between 925 and 850. The 925 area is my long held view for this phase of the move. It lends itself well to the overall rising wedge, and also further bearish setups once a bounce occurs.
Because it can