Friday, June 6, 2014

Thursday, June 5 2014 Technical Action in the $RUT (R2K)

As I wrote on Wednesday’s OEW blog, the R2K needed to break above it’s 50-day MA. The 200-day MA and the 50-day MA were almost creating a symmetrical triangle in the apex of which the R2K was squeezed. The R2K ($RUT) punched decisively through the upper bound of this “triangle” (the 50-day MA) as well as through the downtrend line that Jedi showed us. Here is a chart of Thursday’s action:
Here is a chart of the R2K RS to the $SPX for Thurs. It made a nice upthrust out of it’s base but still has a lot of resistance points to get through, including it’s own 50-day MA.

The NYSE A-D line turned in a nice +1731 plurality today, confirming the strength in the $RUT.

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