Bullish Triangle on the Russell 2000The Russell 2000 small cap index led the market between November and March. Now following a healthy period of digestion, it may be coming back to life.
The main pattern on today’s chart is the series of higher lows since July 19. Combined with the resistance line around the 100-day simple moving average (SMA), that’s a bullish ascending triangle.
Next, the market internals. TradeStation data shows that 910 members of the Russell 2000 are now above their 50-day SMAs, more than tripling in less than a month. The same measure for the Nadaq-100 has slipped from about 73 to 64 in the same period.
RUT has also been finding support this week at its 8- and 21-day exponential moving averages (EMA). A bullish cross is just now occurring on those two lines, which could draw trend followers if it persists. (It also gives a potential risk-management zone.)
Finally, MACD has been steadily rising -- unlike the Nasdaq-100 .
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