Bears not so fast until Russell tells you so

I tweaked my RUT channel from my previous post. I was a bit uncomfortable that the upper band of that channel was not hit at the recent top, i.e. 1007. This is the key with channels; if you are not accurate with the bands, just when you think the support is broken it may bounce hardly and doesn't look back. Back to RUT, the actual channel may be this red one below in which the recent top hits the upper band. The implications of this is important: This makes the RUT channel support relatively young with only 2 hits on the lower band. With this in mind, the upper band needs another hit around 1050-1060 which is a long shot from here. I doubt it will happen but it is always a possibility. Unless we make a lower low today or tomorrow and break this channel, I expect we go higher fast.

S&P has clearly broken the red support after Ben's speech but it is an event driven break. This is the reason I'm very skeptical about this recent decline and I expect a jump very soon towards 1635-40 area which is in line with my RUT projection. However, the blue channel can be a tough resistance against higher prices particularly the area I showed with the ellipse. We will see.

The steep green channel I plotted in my last post on GBP is broken up but there is one more declining channel with a smaller slope that I showed with green again. This channel looks exhausted with 3 hits on the upper band so I expect it to be broken and we may go back to 1.57 area soon. Hope it helps.