Update on RUT: Mar 23, 2015

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.

2014-11-20 RUT  daily 1300

In fact, that’s exactly what happened — thanks to the Bank of Japan.

2015-0323 RUT v SPX 1000 First, a little background.

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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