I’ve mentioned the importance of Friday’s close on the Russell 2000 here, but the finished the week doing its own thing as it worked to reverse the dominant bearish inverse hammer. This particular candlestick is of particular concern, not just because of the pattern but the huge volume which went with it. However, the end of week finish was positive as the index was able to poke its head into the spike high of the inverse hammer.
So, this coming week will be about defending breakouts—the breakout gaps in particular—and clearing trading ranges established since September. There is a bigger challenge for the Russell 2000 as it looks to clear the trading range established since the start of 2018.
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