Russell 2000 futures this week broke free from a downward sloping trendline beginning with the mid-August highs. However, the small-cap contract failed to make new highs after stalling out and closing near the previous highs from Oct. 4 near 1,780, and now looks to be establishing a range between there and where price bottomed out multiple times since June at about 1,645.

In terms of further support and resistance, the 1,800 level is likely a point traders will be watching as it is both the point of the yearly +50% Linear Regression Channel as well as a point that may have psychological importance as it is a round level. To the downside, watch the yearly Linear Regression Line near 1,681.

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