US Russell has formed a base on the weekly timeframe, positioning itself prior to the decision of the US debt ceiling. A positive outcome could really spur some upside.

Taking a look at the US Russell 2000 index for a longer-term outlook, currently trading at around 1,798. From a technical viewpoint, we can see that the index has formed two fundamental levels of support with the first one at 1,689 followed by the more important one at 1,630 (bottom of the channel). A break below 1,630 could see a fall to as low as 1400-1500, although this will only be more likely if the US debt ceiling is not extended. As the base has been formed, investors and traders will be looking towards the upside. Hence, the index will face resistance at 1,814 and then at 1,900. A break above 1,900 could see an attempt back up to the 2,000 level (top of the channel). At the moment, the index is positing itself for a move higher. If the debt ceiling is extended, the likelihood of any bullish moves will rise. The technical indicators are slightly mixed, the MACD is negative but seems like it’s turning neutral-positive, and the RSI is neutrals as it reads 49.