Category Archives: Russell 2000 Index

Russell 2000 Signaling More Strength For Small Caps In 2015 RUT, TF

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The small caps have slowly creeped higher since bottoming in October and are now bumping up against annual highs and threatening to breakout. The best way to follow the small caps is the Russell 2000 (RUT). I posted about the Russell 2000 in August and November, offering analysis and targets for this critical gauge of market risk.

For reference, the August article is located here and the November article here.

The highlights from those posts were:

  • From March 2009 to May 2011, the Russell 2000 moved up 525.98 points or +153.5%
  • A target of 992.7
  • A longer term target of 1200
  • A longer term target of 1261.82 with support levels of 1111.28 and 1087.14
  • A close below 1087 would technically weaken the RUT
  •  The RUT did indeed close below 1087
  • Although that did technically weaken the RUT, it never fell below the lower level of the uptrend channel
  • The RUT pulled back from a high of 1213.55 to a low of 1040.47; a correction of -14.26%
  • A new target Fibonacci target of 1205.92

 

Now here we are with only 3 trading sessions left in 2014, and it’s a great time to check in and see where the Russell 2000 is at now:

  • The Russell 2000 Index did indeed hit and close the two aforementioned targets of 992.7 and 1200.
  • The week of December 22nd saw the target of 1205.92 get hit and is now closed.

Now let’s take a look at where I think we’re going, which is higher.

In the 3 year, weekly chart below you’ll see a shorter term Fibonacci target of 1236.48 with support levels at 1175.76 and 1166.02.

Russell 2000 Index – 3 Year Weekly Chart

Russell 2000 Index – 3 Year Weekly Chart

Russell 2000 Index – 3 Year Weekly Chart

 

Although the (14.26) percent correction negated the longer term target of 1261.82, my thoughts are that the original long term target of 1261.82 will come back into play and be hit as well as the Russell putting in a “13” handle in 2015.

Always use a stop and have a good weekend !

This article originally appeared in See It Market

 

Update: Russell 2000 Index 20 year, weekly chart $RUT $TF_F $IWM

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My last post about the Russell 2000 Index  (RUT) was on September 27th, 2014. You can read that post here on See It Market.

In that post I highlighted:

  • The Russell 2000 was at a Fibonacci support level of 1111.28
  • A 2nd support level of 1087.14
  • A weekly close below 1087 would technically weaken the Russell 2000
  • A target of 1261.75

So, let’s find out where we are on the RUT now.  Starting with a 17 year, weekly chart, you can see that the RUT did indeed close below 1087.  Although that did technically weaken the RUT, it never fell below the lower level of the uptrend channel.

Russell 2000 Index  17 year, weekly chart

Russell 2000 17 year, weekly

Russell 2000 17 year, weekly

 

Zooming in for a tighter view, we can see that the RUT:

  • Pulled back to make a low of 1040.47 the week of October 13th, 2014
  • The pullback was a precise touch of the lower support level of the uptrend channel
  • The RUT pulled back from a high of 1213.55 to a low of 1040.47; a correction of -14.26%

Russell 2000 Index  5 year, weekly view

Russell 200 Index 5 year, weekly

Russell 200 Index 5 year, weekly

 

Now, for an even tighter view, we can see the RUT:

  • Has a Fibonacci target of 1205.92
  • Support levels of 1107.4 and 1091.61
  • Still has ample room within the trend channel to hit the original target of 1261.75, and more.

Russell 2000 Index  3 year, weekly view

Russell 2000 Index. Target = 1205.92

Russell 2000 Index. Target = 1205.92

 

Post originally appeared on See It Market

 

Thank you for reading and remember, always use a stop loss order !

Dave