Don't Ignore This Chart!

Russell 2000 Establishes a Clear Line-in-the-Sand $RUT

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The Russell 2000 surged last week and this bounce gives chartists a clear level to watch going forward. The chart below shows the small-cap index surging from early November to early December and then stalling between 1330 and 1390 for nine weeks. The index exceeded the early December high and hit another new high with the move above 1400 in February, but this new high did not hold very long as $RUT fell back to the January lows. With last week's surge, these lows held and the 2017 lows now mark an unequivocal line-in-the-sand for chartists to watch. Being an index with hundreds of stocks, I would be inclined to add a buffer and set a support zone in the 1325-1340 area. A weekly close below 1325 would break said support zone and suggest that sellers are taking control. 

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Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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