Russell 2000 has been in my focus since mid May where it showed signs of bottoming near 1080. At that point I mentioned that this index was lagging behind the other major indices and if markets were to continue higher, I expected this to outperform and make new highs. Price has been falling in a manner that is corrective. The decline pattern from 1212 is clearly corrective as there is no move and price is making lots of overlapping movements. This is a clear characteristic of a corrective pattern.
My view for the last few weeks is bullish regarding RUSSELL 2000 and I mentioned that it was important for the index to stay above 1080 and break above the Ichimoku cloud resistance at 1150. RUT has finally broken above this resistance level and this is another bullish signal confirming my bullish view expecting new highs. RUT has now pulled back and back tested the break out level at 1140-50 and I expect the rise to continue higher towards at least 1200-1210.
The current price move is inside the upward sloping channel in the 2 hour chart as shown above and the Ichimoku cloud provides strong support at 1154. I now expect a break above 1180 and a sharp move towards 1200. All in all I remain bullish and I believe the structure of the rise is and we still have more room to rise. I believe we are still at its early stages of this new upward move.
As always, thank you for taking the time to read my new post.