Well here it is, the Russell 2000 Small Cap index. We had been managing a Diamond pattern (consolidation, not necessarily continuation or reversal, see lower panel) by daily charts and the RUT’s break from the Diamond would be the ‘tell’ on trend resumption ↑ or reversal ↓. It broke ↑.
The weekly chart is a bigger picture guide to a market leader and folks, while things can change any time, it ain’t bearish in the least and it has not been for quite some time. If it closes tomorrow above the red line, consider resistance broken.
Here is a chart showing RUT’s resumed (modest) market leadership after taking a break for most of 2014.
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