Russell 2000

Russell 2000 (RUT) : Watching RUT resistance at the kumo

I believe RUT provides a fairly good proxy to the risk appetite of the market.

When RUT starts to slow down on its advance, it is a sign that the broader market is perceiving it as more risky.

From the Ichimoku chart, we can see that :

1. RUT has rebounded off the lows at 586 and is now trading within the kumo ( if price level is in the kumo, it is considered trendless.)

2. Kumo resistance at 628.

3. We can see that the price is trading away from the Tenkan sen. This suggest overbought condition. There is a  possibility that the price will retrace nearer to the Tenkan sen before attempting to breakout of the kumo.