During the early December correction that set the stage for the Santa rally, we (being NFTRH) watched the Russell 2000, which had actually been relatively weak as it floundered below resistance at around 1150.
It then smashed through that resistance and joined the other indexes in bullish territory. It has since taken up leadership in what seems almost too logical a manner, considering that this is traditionally thought to be Small Cap season. The breakout can only be called fledgeling (i.e. tentative) right now, but a breakout it is.
What is interesting about the daily chart is not its target, but rather its target’s confluence with the monthly chart’s target, which is also in the 1300’s. Here is the monthly chart created nearly 2 years ago.
In a market where global policy making is in competitive rolling bubbles, these targets continue to be possible if not probable.
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