In an attempt to reduce investor bias and to get a different view of chart patterns, I invert charts (turn them upside down).

Two weeks today, ago the Power of the Pattern shared the chart below, reflecting that the Russell 2000 inverted (same pattern for the inverse Russell ETF RWM), was testing dual resistance in the chart below. We shared at the time that if a breakout would take place, it would be 5-year falling trend breakout for the inverse play (RWM).



This post was originally published at See It on January the 6th. See post HERE  At the time of the posting above, the Russell Index stood at 1,107.  The measure move suggested that upon a breakout, the Russell 2000 index could reach the 930 level.

Below is an update to the pattern, that was first published at See it yesterday. See post HERE

russell inverse breakout jan 20


Click HERE to see rest of article on this breakout by the Russell 2000 inverse ETF (RWM).

Full Disclosure…Premium Members and Sector Members have been short this index for the past couple of weeks, due to the breakout above.

Below is a long-term pattern on the Russell, dating back 20-years.

russell breaking 5 year support jan 19


This chart takes a look at the Russell over the past 25-years. Rising channel support broke in 2007, as it was hitting resistance and we all know what followed in 2oo7 & 2008.

Now the Russell is attempting to break down from its 5-year rising channel at (1) above. Long-term channel support (A) is a long way below current prices, if this channel breaks down at (1) above.

Some say the market is “Mis-behaving,” we feel if you hear this from someone, it means they are on the “wrong side” of the trade. In our humble opinion, the markets are behaving like the patterns have suggested they would do, months ago.

We have been scoring on defense this year. If you would like to do the same, we would be honored if you were one of our Members.



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