Since the beginning of the year the index fell more than 8.6% however last week rose more than 2.5%.
The Russell index is in a potential phase change, from a bearish to a recovery phase and last week failed to close above the 10-week moving average plus is testing a daily resistance.
Last week the index rallied with a narrow range and closed near the high of the week, in addition managed to close above previous week high, suggesting a strong bullish momentum.
The Stochastic is showing a strong momentum and is setting higher lows while price is making lower lows, signs of a potential bullish divergence.
Expecting an upward move to a weekly resistance at 1,078 (scenario 1) on a break above the previous week high at 1,040 or a bounce from a weekly resistance at 1,078 could push the index down to 1,038 (scenario 2).