Bull Flag On the Russell 2000 Index

By | December 7, 2014

There is a bull flag on the weekly Russell 2000 Small Cap Index chart. The strong bounce off the October lows followed by five weeks of horizontal consolidation above the 10 week and 40 week moving averages formed the pattern. A successful breakout projects a move equivalent to the October rally.

37. Russell weekly chart

Small caps usually lead the broader market higher, so the implications of the pattern and the manner it which it resolves, could be important for stocks in general over the near term.

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