RUT Russell 2000 Small Caps 2-Hour Chart Ascending Triangle Versus Rising Wedge

The green ascending triangle for the Russell 2000 small caps shows price breaking out to the upside which is also occurring for the Dow,  Nasdaq and SPX. The ascending triangle pattern (bullish) targets 1225. Interestingly, the red rising wedge pattern (bearish) is also in play with the bears lurking in the background not yet willing to relinquish market control to the bulls.

The red lines for the indicators show negative divergence desiring a spank down in price. Stochastics are overbot. The green lines, however, show long and strong behavior especially by the RSI that has not yet reached overbot territory. Thus, a pull back should occur in this 2-hour time frame but then the following candlestick should print another new price high. Price will not roll over until neggie d is in place for all the indicators. Watch for when the MACD line rolls over.

With the Fed on tap, stocks may chop sideways until the tablets are brought down from on high and the rate hike answer read to the masses at 2 PM EST. If price moves above the top red trend line at 1180 that will nullify the rising wedge pattern and bulls will be cruising higher to fill the gap at 1197-ish. If price drops back under the base line of the triangle at 1165, also the lower red trend line of the rising wedge, the bears will celebrate as price collapses lower probably to the 1140's in very quick order then lower.

Fed Chair Yellen controls the entire fate of global markets. What will she decide today? 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.

Note Added 5:06 PM:  Guess where  the RUT finished today after the Fed drama? Yep, 1180. The battle between the ascending triangle and rising wedge continues. Price will bounce or die from this level tomorrow.