The US Labour Department showed last the producer price index (PPI), which measures price changes before they reach the consumer, the final demand index moved down 0.8% for the 12 months ended in August, displaying the seventh straight 12-month decline. The inflation picture is generally still very subdued with oil and gasoline prices falling and most other costs little changed, American consumers are enjoying mild inflation. The dollar has risen about 15% in value in the past year, which makes imports cheaper. The Federal Reserve (Fed) has got a bit of a tough dilemma. The labour market is getting close to full employment and growth is quite solid but inflation is clearly below the Fed’s target, it will be a close call on whether the central bank will raise rates this week. The Index rose 0.5% since the start of the month and fell 3.0% year to date, plus is in a well-defined bearish phase since late August. Russell 2000 rose with a narrow range last week and closed in the green near the high of the week, made a straight 2nd narrow week. The stochastic is showing bullish momentum although is below the 50 mid line. Expecting an upward move to weekly resistance at 1,212 on a break above previous week high at 1,171.5 (scenario 1) or a break below previous week low at 1,131.4 could push the Index down to a weekly support at 1,078.7 (scenario 2). UsaRus is a CFD written over Russell 2000 futures.