RUT overshot the large white channel top for most of the past year, dropping back below it in late August when the rest of the “markets” took a pause.  Note, however, that the yellow channel top never was exceeded.

As we noted at the time, the smaller white acceleration channel broke down.  But, RUT climbed alongside its belly rather than react as indices normally would.

The late-August plunge changed things.

continued for members…Note that that plunge, as dramatic as it was, didn’t really accomplish a very deep retracement of the 25% gain from last October 2014’s lows — especially given that it busted a complete H&S Pattern.Since then, RUT has backtested the gray channel midline and paid a fair amount of attention to Fib Fan lines. If bankers disappoint this week, look for the red .786 or .886 to come into play, with a double bottom at 1040 a distinct possibility.

If they deliver, then the sky’s the limit — starting with some higher Fibs on the white grid, and the ultimate prize of the white 1.618 at 1320 by year’s end.