Russell 2000
RUT chart paints one of the best and clear pictures of where our economy stands.
Since topping out in Sept. ’18, RUT broke the trend and went into a sideways market.
In Nov.’20, price broke out of sideways range and continued uptrend.
At breakout price of 1708, price continued uptrend and topped out at 2355.
From there price broke down and close beneath 50ema in May ‘21. This ended the uptrend and sent price into a sideways range.
Price started to range between low of 2100 to high of 2350
Early Nov.’21 break broke out and upwards out of this range in what looked to be the start of new uptrend.
By the end of Nov.’21, price couldn’t hold support and fell back into range. The breakout is now deemed a “False Breakout”.
As price fell back into range, it found itself unable to break and close above 50 and 200 ema.
In Jan.’22, Price broke down from range. This breakdown now signaled a possible start of new downtrend.
Price continued its move downwards and bounced at 1920 area. During this time, we also saw a Death cross between 50 and 200 ema. This cross further confirmed the bearish conditions in the market.
After the breakdown, price pulled back to previous support @ 2100 and bounces off it turning previous support into resistance.
Currently, we are at support turned resistance level after breakdown of range.
The market broke down from this sideways range and we can now label it a “Distribution Stage”.
The Stochastic currently sits at 100, showing us the market is current completely “over-bought”.
The MACD is also under 0 in bearish territory.
We are entering a downtrend and couldn’t be at a better place to enter the market to short.
This is an ideal time to find short set-ups in the stock market.
RUT chart paints one of the best and clear pictures of where our economy stands.
Since topping out in Sept. ’18, RUT broke the trend and went into a sideways market.
In Nov.’20, price broke out of sideways range and continued uptrend.
At breakout price of 1708, price continued uptrend and topped out at 2355.
From there price broke down and close beneath 50ema in May ‘21. This ended the uptrend and sent price into a sideways range.
Price started to range between low of 2100 to high of 2350
Early Nov.’21 break broke out and upwards out of this range in what looked to be the start of new uptrend.
By the end of Nov.’21, price couldn’t hold support and fell back into range. The breakout is now deemed a “False Breakout”.
As price fell back into range, it found itself unable to break and close above 50 and 200 ema.
In Jan.’22, Price broke down from range. This breakdown now signaled a possible start of new downtrend.
Price continued its move downwards and bounced at 1920 area. During this time, we also saw a Death cross between 50 and 200 ema. This cross further confirmed the bearish conditions in the market.
After the breakdown, price pulled back to previous support @ 2100 and bounces off it turning previous support into resistance.
Currently, we are at support turned resistance level after breakdown of range.
The market broke down from this sideways range and we can now label it a “Distribution Stage”.
The Stochastic currently sits at 100, showing us the market is current completely “over-bought”.
The MACD is also under 0 in bearish territory.
We are entering a downtrend and couldn’t be at a better place to enter the market to short.
This is an ideal time to find short set-ups in the stock market.
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Beautiful rejection of resistance
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.