On The Fly: Weekly technical notes for Russell 2000

For the week, the Russell 2000 (RUT) is not only ending lower but is settling close to its 52-week low. In the coming week, that 52-week low at 1436.43 becomes the key level to watch. Break down below it and the next support isn't until round-number at 1400. If there is instead a bounce back in price, the 1500 area is now significant resistance. There is another important technical feature to consider as well and that is the appearance of a bearish head and shoulders top when looking at a 5-year price chart on a closing basis. The pattern became active when price broke down below 1469. If this pattern is valid, long-term downside would be to the 1150 area. A move above the right shoulder at 1550 or better would void the pattern.