RUT has been resisted twice at 624 since September; forming a double top.
The recent bounced off 600 was very short lived Â and RUT broke support at 600 yesterday.
With these break, we are looking at the next possible support of 580 based on the Chikou Span.
For now, the Bearish Cross from Tenkan sen – Kijun sen has not surfaced yet. And there is a chance that it will rebound off the kumo support ( from 588 onwards) and put it back into the 600 range.
Looking at the Ichimoku Daily Chart, we can see that the leading kumo is flattening. There is a chance that it will consolidate around this range before the next move.
At this moment, it is not clear where the next move will be. We will need to observe the chart for further developments as it tests the critical support level at 588 and try to break through above 624.
If RUT does consolidates within a tight range for a prolong period of time, we need to be wary of the direction that it breakout to. The longer the consolidation, the greater the strength.
– I have a vested Iron Condor position in RUT