Russell 2000 – Weekly Analysis
Russell is approaching a pivotal moment, where several signals are quietly aligning beneath the surface—while the broader market sends mixed messages. As other indices diverge and realignment becomes the key question, candlesticks, trend structure, Elliott Waves, and momentum are converging toward levels that could define Russell’s next phase. We will zoom in on what matters most, then step back to see how this index fits into the larger market puzzle.
CANDLES
This week, Russell delivered several constructive signals. On the mid- and long-term frames, it confirmed a bullish reversal on the 10D and formed a solid bullish Engulfing on the 15D. The weekly printed a bearish Engulfing, but the supporting technicals for confirmation remain weak. The daily closed Friday with a bullish Engulfing.
Overall, the index is bullish across nearly all frames, with trends remaining healthy and intact.
Short term (daily): bullish
Mid term: closer to neutral, needs direction
Long term (monthly): bullish
ELLIOTT WAVES
Mid Term
I continue to track both the green and blue counts. The green count is primary at this point.
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.”
Below is the full evolution of the charts since June.
Summary:
This week, Russell largely withstood a strong bearish attack and positioned most of its candles for a continued rally. The weekly frame remains the weakest link, although the supporting technicals still lean bullish.
At this point, the index has preserved all bullish trends and remains firmly bullish on the long and very long-term frames.
Happy Trading!
