Friday, November 16, 2012

Russell 2000 index (RUT) finds horizontal support

NOV16 1033PST.  The Russell 2000 index (RUT), along with the other principal equities indices, is enjoying a midday bounce of some 1 percent from intra-day lows.

The charting story here is that the RUT bounce has come from the well-defined horizontal support level of approximately 764-765, which was the index's local minimum on three separate occasions this summer: June 28, July 24, and August 2.

RUT. May 23, 2012 to present. Hourly candles.
Also noteworthy: the Russell 2000 is below its extended 2-month price channel (shown in red above), from which the index emphatically broke on Nov 14. On any forthcoming rally, the RUT is likely to encounter intra-day resistance upon reaching this channel; currently, that would suggest resistance in the neighborhood of 785.