Russell 2000 – Weekly Analysis
RUT continues to grind higher. In this update, we read beneath the tape—candles, momentum, and wave structure—to judge whether the sharp pullback was a shakeout or the opening act of something larger. We’ll outline the key levels and the tells most will overlook.
CANDLES
Indeed, the Russell 2000 printed a 100/200-DMA bullish cross on Monday and pushed higher through the week. It closed both the weekly and 15D frames with bullish continuation candles. Friday’s daily finished with an incomplete Dark Cloud Cover, which could trigger some short-term weakness, though it still needs confirmation. 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
Back in early June, I highlighted an Inverse Head & Shoulders. On August 10, the pattern added a larger-degree shoulder. As noted then, “RUT could be looking at the potential for an enormous 30% rally over the next 5–10 months.” That assessment stands—RUT is already in the first target area.
Summary:
The Russell’s mid- and long-term posture remains decisively bullish. Short-term volatility is possible, but likely contained.
With trends and technicals in solid shape, continued upside is the base case. Viewed across lenses—technical events, candlestick structure, Elliott Waves, and classical patterns—the index looks embedded in a powerful advance that could persist for months, potentially quarters.
Happy Trading!
