Russell 2000 – Weekly Analysis
In this weekly report, we examine the latest candlestick signals, trend alignment, Elliott Wave structure, and momentum to identify the key levels that matter next for the Russell. We then step back to provide a broader structural perspective. Let us begin.
CANDLES
Russell formed a bottom on the weekly frame and made a solid bullish statement on the 8D. The 10D and 15D frames are next, but those signals will require more than a week to develop.
RUT is bullish until signaled otherwise.
Short term: Bullish
Mid term: Bullish
Long term (monthly): Bullish
ELLIOTT WAVES
Mid Term
No changes in the mid-term Elliott Wave outlook.
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 a solid foundation for the next leg of its rally and is advancing at a moderate pace. The index is well positioned for substantial gains—on the order of 15–20% from the most recent bottom—over the next two to three months.
Happy Trading!
