Russell 2000 – Weekly Analysis
RUT keeps grinding higher. This update reads beneath the tape—candles, momentum, and wave structure—to decide whether the sharp pullback was a shakeout or the first act of something bigger. We’ll map the levels that matter and the tells most will miss.
CANDLES
The Russell 2000, after closing August with strong bullish signals, pressed higher and strengthened the mid-term odds. The daily printed a bearish Harami, with a fair chance of proving a fakeout. A 100/200-DMA bullish cross is likely first thing Monday. Mid- and long-term views continue to point toward a sustained advance.
ELLIOTT WAVES
Long Term
The long term outlook remains unchanged.
Mid Term
Russell is likely in wave 3 at some degree.
Inverse Head & Shoulders
At the beginning of June, I highlighted an Inverse Head & Shoulders. On August 10, the pattern added another shoulder of a larger degree. As I noted then, “RUT could be looking at the potential for an enormous 30% rally over the next 5–10 months.” That assessment stands.
Summary:
The Russell remains firmly bullish on the mid- and long-term frames. There is some risk of short-term volatility, but it is likely to be limited.
Technicals and trends are healthy-bullish, and a continued advance is the base case. Taken together—technical events, candlestick formations, Elliott Waves, and classical patterns—the index appears to be in the middle of a super-rally that could run for several more months, or even quarters.
Happy Trading!
