Russell 2000: A move back to the 1373 April high – Credit Suisse

The Russell has surged dramatically higher, gapping at the open to break with ease above the price gap from last Wednesday, 63-day average and then more importantly the downtrend from February, per Credit Suisse.

Key quotes

“Although volume was slightly lower than that seen Friday it is still on balance higher than that seen through April and we look for the strong tone to be maintained.” 

“Immediate resistance is seen at the 1373 April high and although this should be respected, our bias is for a break through here to test what we see as the next tougher area of resistance, starting at 1396 and stretching up to 1449, which includes the price gap from early March and the 61.8% retracement of the collapse at 1429.” 

“Support is seen at 1323 initially, below which can see a fall back to the back of the broken uptrend and yesterday’s low at 1299/91, with the lower end of the price gap from yesterday at 1259/57 now ideally holding to keep the immediate risk higher.”