The Russell 2000 index is made up of small cap companies and is outperforming other indices. Earlier in the year, it also consolidated along with the rest of the market. But as the daily chart below will show, price has already broken out of that period of consolidation, which was represented by the triangle. RUT Daily Chart (click to enlarge) Bullish Breakout from Triangle:- The daily chart shows that price broke above a triangle consolidation pattern in May.- Note that throughout the consolidation period, price was holding above the 200-day simple moving average (SMA). - It looks like a clean bullish continuation breakout.Pullback:- Even though the breakout is very clean and has sharp, we can anticipate some resistance soon.- The RSI and price action shows a bearish divergence. - However, we established that the overall trend is bullish, so we might consider this an opportunity to "buy-on-the-dip".- If price, I think price should hold above the $1600 area, though if there is a sharp retracement, it can extend down to $1560. - A break below $1540 on the other hand would signal a return to consolidation mode, and possibly further bearish correction. We can also make the case that the general market will catch up. Perhaps, if investors turn from optimistic to cautiously optimistic, they will rotate from small caps to larger caps, and you will see the S&P 500 and Dow clearly breakout from their current consolidation mode as well.S&P500 Daily Chart(click to enlarge)