On The Fly: Weekly technical notes for Russell 2000

Like its mega-cap brethren, the Russell 2000 (RUT) saw a volatile week on the downside. But the technical condition of the index is quite a bit more bearish. Price is set to end much closer to the lows of the week within the context of a sharper downtrend. Price is very close to the 1500 level, below which a rounding top pattern would be confirmed. That rounding top has downside potential to the 1400 area. There is of course nor certainty that this pattern will trigger. Price could bounce back next week and continue trading in the 1500-1600 band. It would not be atypical for the Russell to lead and for the S&P 500 to follow, in either direction.