Russell 2000 – Monthly Analysis
In this monthly report, we’ll weigh the latest candles, trend alignment, Elliott Waves, and momentum to identify the key levels that matter next for Russell — and then zoom out for a helicopter view of the broader structure. Let’s begin.
CANDLES
Those who trusted last Friday’s candle signals would have done handsomely this week. The weekly reacted in a classical manner to the Ladder Bottom, flipping what was a dangerously bearish monthly candle on November 21 into a likely bullish continuation candle by November 28. Unless RUT drops about 2.5% on December 1, the 10D frame will reinforce the bullish odds for the mid-term horizon.
Short-term: Bullish
Mid-term: Bullish
Long-term (monthly): Bullish
ELLIOTT WAVES
Long Term
The long-term outlook remains unchanged. The wave V target has been reached, and the Three White Soldiers on the 2M frame signal improved odds for a continued move upward.
Mid Term
So far, the technicals suggest that RUT is in wave 3 of some degree.
Inverse Head & Shoulders
Back on June 9, I highlighted an Inverse Head & Shoulders pattern. On August 10, that structure developed a larger-degree right shoulder. As noted then, “RUT could be looking at the potential for an enormous 30% rally over the next 5–10 months.”
On October 15, Russell reached the midpoint of the first target zone and has been consolidating since. Another flag has now been completed with a Bullish Engulfing, and the targets remain intact.
Showing the entire evolution of the charts since June.
Summary:
Russell has likely formed a bottom and established a solid foundation for the next leg of its rally. The index is well positioned for significant gains in the range of 15–20% (from the most recent bottom) over the next 2–3 months.
Happy Trading!
