In our last major update on RUT, we noted that a rising channel from had broken down. But, we also noted, RUT had since bottomed out and was aggressively backtesting — climbing the underside of the broken channel.
Now, backtests can and — in this rigged market — often do go on to exceed previous highs. So, the current one could easily climb right on up the belly of the broken wedge to 1213 or higher.
In fact, that’s exactly what happened — thanks to the Bank of Japan.
RUT’s drop through major support had drawn attention. Even permabulls had noticed the glaring divergence between RUT and SPX. And, they were starting to talk.
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