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What is the “Trend” of the Russell 2000? If one uses the 200 day moving average as a benchmark, the trend remains UP…. as small caps are still above this long term moving average. FYI- The small decline does have the Russell below its 50 & 100MA’s at this time.
I attempt to find Tops and Bottoms and what is going on in the Russell 2000 has my attention at this time. Recently the rally in the Russell took it to its 161% Fibonacci Extension level, where it ended up stopping on a dime at (1). Of late the small decline in the Russell index broke steep rising support and last week the index created a bearish wick under this rising channel at (2).
In my humble opinion, it is worth keeping a close eye on where the Russell stands the end of this week and the next couple of weeks, because of the channel break and bearish wick last week.