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Russell 2000 Looking for Lower Ground

Russell 2000 Looking for Lower Ground

Russell 2000 Mini ICEUSA:RJ1!

The Russell 2000 boasts a whopping 89.27 P/E ratio and a dividend ratio of 1.36 percent. There actually is sometime that pays less than a US 10Y (for now). Seemingly an index that is traded off of technicals, traders could see today's rapid pullback as the beginning to a larger correction. After a double-doji top, the Russell 2000 could not expand upon all-time highs (NASDAQ is next). Price action on the daily chart was nicely confined within an ascending channel before breaking through and quickly topping. Noticeably, price action formed an ascending wedge. This is a bearish reversal pattern. I began noticing that assets that were out of vogue, like gold and silver, were presenting descending wedges while those favored are looking toppy and forming ascending wedges. I digress. Wedge support will be the most likely support level near 1,227, while price action will see 1,220 where price action and the 50 EMA (currently) is holding up. Ultimately, the Russell 2000 can see sub-1,200 in mid-to-late April. Record accumulation looks to start seeing a period of distribution, and price action is switching from bullish to bearish.