The US Small Cap Stocks Are Gearing Up for a Bull Run

14 Jul

• After a sharp decline in March 2020, the index showed resilience and made a significant upward move, approaching the 3,250 level.
  
• Following that, Russel 2000 went into a period of consolidation and traded within a narrow range.
  
• A bullish Pole & Flag pattern was identified on the chart during this consolidation phase.
  
• Despite breaking out of the pattern, the index faced strong resistance and subsequently declined.
  
• After finding support around 1,650, the index consolidated around this level for an extended period.
  
• With a recent breakout, Russel 2000 appears to be strong at the moment and preparing for the next upward movement.