The rally that we are experiencing in the Russell 2000 from bottom to top is an 11.34% increase (Orange Box). The last time the Russell 2000 rallied was from May 12 to June 22, 2022 (Purple Box). It was up 12.78% percent during that time.
Now the most important question is, can this rally continue or a least go sideways without giving up the recent gains?
As you can see in the chart above, the May to June rally couldn't hold, therefore the Russell 2000 lost all its gains and went lower. Looking at the long term down trend, I believe the Russell 2000 must break the 1856 level. The next resistance point up from there would be 1898.
The next few weeks will very interesting. If you like these articles informative, please consider subscribing to my newsletter.
Thanks,
Mike
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