$RUT Daily Chart
The fight is right here. Mon/Tues of next week could possibly set the tone and course for the rest of 2014. Let me explain. As I've been discussing for the past 6+ months, we've seen the large rising wedge on RUT form, break down, backtest the wedge, and then begin to fall away since the March top. The Russell top has been 7 months in the making, thus, it should not be a surprise if it indeed finally begins to breakdown in earnest. The RUT will detonate under 1080. That level has clearly become important.
The bulls, however, are taking their last attempt to induce a rally on the RUT, with today's small afternoon rise on a Friday. You see the two positive MACD divergences on the daily chart shown. The April bottom and the first week of May bottom give you the first. The two May bottoms give you the second. These will either be nullified with weakness at the beginning of next week, or they run the risk of beginning a sustained rally on the RUT.
However, if the divergences fai
I don't think RUT ever sees 850 again, but if it does....a TON of support there.
to the upside and then down to your targets....
I'm am so sick of this piece of Shit market...