Short Term Trading Member Forum

[Blackbelt1]

USA, when I sit back and look at the $RUT hourly chart from the 40-week low to present, I see a chart that is breaking down, looking increasing bearish. A climb above 675 in the next 5-week cycle is increasingly less likely.

Two hurricanes may have affected the cycles, but I simply cannot ignore the evidence of the way the RUT collapsed into the 20-week low and then fell into the current 5-week low. Maybe the market snaps back, but right now, it is a definite maybe. :)

When I draw a line across the August and September peaks, I think we are looking at a likely maximum target for the next 5-week cycle.

What this chart seems to be begging for is a parabolic mirror image of the ascent from the 40-week low as we head into the 80-week low. This is the model I'm following and will adjust positions if we see contrary signals.

Blackbelt