Abigail Doolittle | Aug 21, 2012 12:57AM ET
Apparently the Russell 2000 loves this deceptively bearish pattern built of an uptrend with many more Rising Wedges showing in the two-year daily chart below than the six distinct patterns that are marked.
Relative to the competing bull case, it’s hard to fight gravity, but there is a chance of move up toward 930 on a monthly Pipe Bottom comprised of May and June and it confirms at 830. Interestingly, the Pipe Bottom itself presents well, but it is hard to see it beating the Russell 2000’s trend of lower highs with the test resting at that pattern’s confirmation level of 830.
Above 830 and this will put the focus on the possibility of the Russell 2000 rising above this year’s high of 848 to truly dissolve its multi-year trend of lower highs, but below 830 and think about all of the Rising Wedges in the Russell 2000.
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