The Russell 2000 is often a key to any potential change in trend with the stock market as a whole. That has certainly been the case for the past 15-20 years. It has been in a long term Balance Area for over a year. In October it broke to the downside in what appeared at the time as an Initiative move to the downside. It quickly bungee jumped back into the BA range and I said at the time to be alert for a False Breakout Trade – a move that retraces the entire previous BA in a fraction of the time it took to create it. That may still be underway, and if that is correct the retracements until we see new highs in the Russ should be short lived and shallow. The Russ is now trading above the previous HVN of the long term Balance Area.
Short-term support lies at 1170 – 1167.