Russell closed March with very candles that point to different directions. While the longer term quarterly and monthly candles suggest that the index has lower prices to explore, the shorter term weekly and daily advocate a rally.
Another aspect is that the positioning of the longer term RUT candles are quite different from the ones in SP500. While they often fluctuate in unison, this time they could part for some time. Perhaps, one of the reasons is an imbalance between P/E ratios between SP500 and Russell.
The chart above is the latest long term projection for RUT that has worked well for over two years. The chart below is the snapshot of the same chart on November 27, 2021 when I forecasted a drop of 20-33% off the top.
RUT hit the minimal target, but there are several signals that indicate that the correction might not be over yet.
This Quarterly overview contains:
– analysis of technical indicators and candles of various time frames;
– long and mid term forecasts with Elliott Waves.
This post is part of the Weekly Analyses series that @InvestingAngles offers to followers and subscribers. The series covers the US and global major indices; VIX, DXY, commodities and miners, crypto, and some large cap stocks.
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