Russel 2000

18 May 2016 ‚óŹ 05:14 AM

The US indices are key, that will signal the next big move in global equity markets this year. However the Dow has been among the strongest of indices. The Russel 2000 of smaller stocks has retraced 61.8% of the entire decline over the last year. It has been falling from there breaking a neckline of a minor H&S pattern. The implications should be more downside from here or a resumption of the downward trend.


The weekly chart shows that the Russel at a higher degree of trend broke a head and shoulders neckline in early 2016. It has so far made an attempt to go back above the necklikne. But this week we are back below the line and a break of the neckline would indicate a move back to new lows. This is based on the neckline target. Calculated by adding the size of the head below the neckline.


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