If you haven`t bought the RUT 2K regional Double Bottom here:
On Tuesday, Fitch Ratings downgraded the US debt rating from the highest AAA rating to AA+, citing "a steady deterioration in standards of governance."
This downgrade occurred following last-minute negotiations among lawmakers to secure a debt ceiling deal earlier this year, which put the nation at risk of its first default.
Following a similar credit downgrade in the past, the RUT 2K Russell 2000 experienced a sharp decline of 17.50% within a three-month period. S&P, one of the three major credit rating firms, downgraded U.S. debt on Aug. 5, 2011, after another significant debt ceiling battle.
Presently, the U.S. 10-year Treasury yield has risen to 4.15%, reaching its highest level since November 2022.
Even though is not likely, a 17.50% decline will lead to a Price Target of $1630 for RUT 2K.
Looking forward to read your opinion about it.
Trade active
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RUT following the trendline.
Trade closed: target reached
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RUT wend down to the penny to our price target! So that U.S. Credit Downgrade statistic really worked.