On The Fly: Weekly technical notes for Russell 2000

For the week, the Russell 200 (RUT) did hit a fresh lifetime high at 1524.18. At time of writing the index appears set to end the week slightly below that new high. A bullish flag pattern on the long-term monthly chart did trigger, with expected upside over time to the 1580 to 1600 area. A breakdown below 1505 would see the pattern become inactive, making it the first significant level of support. Sector breadth was very strong in the holiday-shortened week, with all finishing in the green. The leading sectors were Technology, Energy, Industrials, Consumer Discretionary, Health Care, Basic Materials, and Consumer Staples. The Utilities were the weakest sector on a relative basis, finishing up fractionally for the week.