We last mentioned the Russian Stock Market on May 27. Back then, we noted that the RTS Index had reached the short-term target that we mentioned in a post just 10 days earlier and that its bottoming process was continuing in textbook fashion. Time for an update:

On the busy chart, one (hopefully) can see that after consolidating its move up to 1330 for a few weeks, it broke above that short-term resistance (representing the 200-Day moving average and 61.8% Fibonacci Retracement of the October to March decline). It is now challenging a major, and well-defined, downtrend line connecting the 2012-2013 peaks. Should the RTS manage to break above this trendline, it could be another indication that the long-term bottoming process that we hinted at a few months ago is continuing to play out and a longer-term change in trend (to the upside) is in the works. We’ll continue to monitor developments.