RUT – The Sleeping Giant Awakens?

Back to back reversal trend days, which we haven’t seen in a while, and NQ has now made the new ATH that Stan and I were looking for. My video was moved from premarket to just before midday this morning, as a big Windows 10 update took my media computer hostage for several hours and I had to wait for that to finish. Here is the section on ES, SPX, NQ, and TF. Intraday Video – Update on ES, NQ, and TF:


What I’ve been looking at since I did the video is the very interesting setup on RUT here, as it had barely moved all week before moving down yesterday to break the last low and the daily middle band. That lower low was on positive RSI divergence, and at the close today, RUT may well fix a daily RSI 5 buy signal, with a full rejection candle today against yesterday’s decline and a nice little double bottom set up that on a sustained break over 1533 looks for in effect a full retest of the all-time high. If that delivers then we may well see NQ make my resistance trendline in the 6530 area and a test on ES of 2700 before the December high, which we are expecting sometime next week. RUT daily chart:

TGIF. Everyone have a great weekend 🙂

Written by:

Richard Chappell

Jack is a 20 year retail trading veteran and co-founder of The Art Of Chart. He started his blog at in 2010 and since has published tens of thousands of charts looking at hundreds of trading instruments across most tradeable markets, doing original work mainly in the areas of trendlines, patterns and divergences. At The Art Of Chart Jack has taught trading skills, technical analysis, and the discipline and trader psychology that allow those to be used effectively in trading.

15th Dec 2017

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