Russell futures made a very clear Bearish Engulfing today.
If the index closes tomorrow below today’s low, the downtrend would be confirmed, and it would have a good chance to paint a Head & Shoulders pattern with the neck on the 100 MA line (around 2050). The bearish odds are strong now and it might take a week or so.
At the 100 MA I would expect a little bounce. Whether this bounce is a reversal or just a bounce, I would be able to evaluate based on the weekly candle this week. It would be very telling.
If the pattern is complete and broken through the neck line, I would expect another retrace to 1800-1900 area. Again, I need to see the weekly candle this week.