16 Jul 2020 ● 02:55 AM
The Russell 2000 was consolidating in a narrow range when the NASDAQ 100 was making new highs. Bollinger bands can be seen as contracting sharply. The last 3 days it has broken out offer triangle range and the daily momentum has crossed over to the buy side for the 3rd time since March. The index was up 3% last night and probably marks the start of a rally to higher highs as the rotation from one sector to the next would likely be because of a further advance in US indices.
The weekly chart of the Russell shows the upper Bollinger band near 1580 is the next important resistance level. The trendline of the highs at 1700 may then be achieved above that, a level that the NASDAQ has already surpassed.