Russell Triple Top?

By | April 30, 2015

The Russell 2000 Small Cap Index (RUT) traded in a horizontal channel in 2014 and then broke above channel resistance this year. This week the index pulled back from its recent highs and broke below an uptrend line drawn off the March/April lows.

44230. RUTweekly

44230. RUTdaily

Yesterday, it closed below its 50 day moving average. It looks like it is headed towards a wide zone of support delineated by long and intermediate term trend lines, with the next level of support being the 200 day average. Of interest, is the potential triple top formation defined by the March and April highs.

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