On The Fly: Weekly technical notes for Russell 2000

The Russell 2000 (RUT) did break support this week and that is important technically, when it dropped below the 1360 area. On a daily chart, a bullish gap from December was filled by this action. For the week, the index was much more of an under-performer than its large-cap brethren. The "Trump Trade" stocks did most poorly it would seem in inauguration week, which could simply be the result of an absence of details on tax reform, deregulation, and fiscal stimulus that the markets hope will soon come. At time of writing, price was near the 1351 area. First support of note is some way below here at the 1315 area. A breakdown below 1300 would be the major technical event needed to turn the long-term trend bearish. Resistance is at the 1360 area. The index would need to break back above this level and build on it to get back on a more neutral footing from short-term bearish. In terms of sectors, Energy was the only one to finish in the green. The weakest sectors in descending order were Telecommunications Services, Basic Materials, Consumer Cyclicals, the Financials, and Health Care.