RUI closes below its opening price unable to hold early session gains
Russell 1000 Index (RUI) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
RUI finished Wednesday at 1882.91 losing $7.97 (-0.42%). Trading $14.55 higher after the open, the Russell was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on September 11th, RUI actually gained 1.49% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (RUI as at Sep 16, 2020):
Wednesday's trading range has been $24.43 (1.29%), that's slightly below the last trading month's daily average range of $30.50. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for RUI.
After spiking up to 1906.81 during the day, Russell 1000 found resistance at the 20-day moving average at 1903.54. After having been unable to move lower than 1881.88 in the prior session, the market found buyers again around the same price level today at 1882.38.
Though the index is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for Russell 1000. Out of 428 times, RUI closed higher 59.58% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 65.89% with an average market move of 0.54%.