Option Investor
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Russell 2000 at Critical Support

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Several bottoms have been called in the RUT.X the last several weeks and into the close, the RUT.X is testing a critical level of near-term support.

I've been showing multiple charts that were triggered by a trader's question from last week, and there are some reverse head and shoulder patterns in the major averages, where even the WEAKER Russell 2000 (RUT.X) shows the pattern, but with a descending neckline.

The "stars are aligned" with the major averages in their respective MONTHLY Pivot retracement.

Russell 2000 Index ($RUT.X) - 60-minute intervals

[Image 1]

I've always tried to teach traders to not only monitor STRENGTH for leadership, but to also monitor the WEAKNESS that we find.

If market participants feel that the lows will NOT be tested anytime soon, then the RUT.X gets my "chart of the hour" as we head into the close.

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