I shared this chart exactly two months ago suggesting that “$RUT could possibly lose 20-33% of its cap in the next few months”. Well, it happened – the same chart on the right shows exactly that.
The forecast was publicly shared in this Study on November 27, 2021 and I still maintain the minus 33% target, though, after a few events last week I tend to think about deeper losses. I plan to shoot an Educational video on RUT index very soon.
And one more chart. It was designed TWO years ago, in January 2020, when RUT was $1660. I forecasted its drop to $900-1200 area, followed by a rally to $2200. I hope everyone remembers RUT’s drop to $966 in March 2020 and its rally to $2458.
The only thing I underestimated is timing, the moves happened much faster than projected on the chart. Here is the chart.
Short Term EW Chart:
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Last week I posted the MARKET WEEKLY video where I discussed a very bearish scenario for SP500. My technical analysis suggests that the odds for the scenario are increasing. SP500 is likely to follow suit.
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