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Russell 2000 – Weekly Analysis

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Is Russell once again acting as the market’s harbinger? The latest signals suggest it deserves a much closer look. In this weekly review, we examine Russell through its technical indicator structure and Elliott Wave context to assess what the newest developments may be signaling, not only for small caps, but potentially for the broader market as well. CANDLES Russell made a major statement on Friday after struggling to advance for most of the week. It was the weakest among the majors and broke below the 8 and 20 EMA in a single move. From the classical-pattern perspective, RUT may have completed a Double Top. Adding insult to injury, the weekly frame closed with a Bearish Engulfing. Mid-term momentum has not fully shifted yet, but the 1D to 3D frames have already confirmed a top. We should also remember the March quarterly close, when RUT formed a potential Advance Block. The…

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