The Russell 2000 (RUT) held up well for over a year during the bear market. But eventually the bottom fell out and price declined 50% in a few weeks. Price has bounced off the March low and is currently moving towards the 50/50 point of this range.
The bounce from March has moved between the 8×1 and the 2×1 slope of the 2007-2009 decline. As long as price remains above the 1×1 angle the market can be considered in a strong position.
The swing chart using a tool from Gannalyst shows the strength of the recent move. This tool switches the swing with one bar in the opposite direction. The numbers show the total points and the number of calendar days before a change. For example, the initial move up was 79 points and lasted 10 calendar days. After a one day correction another six day move took price up 46 points. The current drop of 40 points and six days exceeds all drops during the thrust up. This signals the move is complete or near complete. It is possible that price will make a new high next week with a push up. But if it does not then the short trend can consider to have changed.
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