RUT Russell 2000 Small Caps Daily Chart Upper Bollinger Band Violation Overbot Rising Wedge Negative Divergence

The RUT managed a close over 880 today.  Typically, according to Keystone's 80/20 rule, 8's lead to 2's, so a close tomorrow and Monday above 880 will likely lead to 920. The rule is more of a guideline and is only one tool in the box.  Of more interest is the bearish set-ups in the chart. Price has punched thru the upper BB so a move back to the middle BB (852) would be expected to occur at a minimum. Sometimes price will slide up the BB like early September but price already appears to be moving away from the BB as the hanging man candle is printed today.

The red lines show negative divergence in place across the board, across the VST two-week time frame and the four-month time frame except for a smidge of flatness with the MACD line over the last two days, but for the most part, the indicators are universally negative wanting to see a spank down.  The stochastics are overbot and the price action also takes on the rising wedge pattern as shown.  That is a lot of negatives but in these crazy markets, who knows what will happen in the morning? WFC earnings are holding all the cards and will set the market tone before the opening bell.  The projection for RUT is to move sideways to sideways down from here forward thru the weeks and months ahead. The weekly chart is negatively diverged. The SPX daily chart exhibits the same behavior. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.