UUUS Small Cap 2000 Index
2,381.8219USDR
−13.0724−0.55%
At close at 20:04 GMT
USD
No trades
RUT trade ideas
US2000 RussA few notable demand spikes on the weekly. Appears as if it is possible for an accumulation cycle to begin here in the next few days/weeks. Typical behaviour and standard targets. We will see its behavior as it nears some previous demand zones/order blocks.
will follow up once it triggers some low alerts.
Russell 2000 - US Economy in Trouble, 50% Shorting Opportunity?Although big indices like S&P500 and Nasdaq, favouring large cap companies, have still got potential to update historic highs - what is small caps index Russell 2000 telling us?
It has already dropped by 30%, is there more downside and is it indicating that real US economy already in trouble?
Technical Analysis (Elliott Waves):
Looking at weekly timeframe it is visible that sharp drop in March 2020 has completed fourth wave of an impulse that has been developing since the great financial crisis of 2008
The proposed scenario suggests that the 5th wave has culminated in November 2021 and since then the next global correction has started which is likely to last even longer than the previous one that stretched from 1998 to 2009 - it's shocking to think of a correction for 11 years or longer
The most interesting opportunity however, is the potential development of an Expanding Triangle which may have been formed with A-B-C-D waves already
And given that there was an optimistic bounce on Friday 13th May in all the markets, there is a potential move for Russell 2000 towards $2140 to complete this triangle
In this case the next move to the downside may have a great opportunity with nearly 50% for shorting the index and expect the target in the range between $1000 and $1300 which represent 0.618x and 0.5x Fibonacci retracement levels of the global wave 3
What do you think about this idea and US economy as a whole?
Please share your thoughts in the comments and like this idea if you agree wit it.
Also let me know if you would like to see other stocks, indices or Forex pairs analysed using Elliott Waves.
Thanks
Not out of the storm yet.The Russell 2000 is currently at the pre-covid 19 high area however this area is not going to hold because many of these small debt ridden high growth assets will be killed by a combination of both high interest rates which increases debt servicing costs when many of them are over leveraged. Along with soaring costs due to severely damaged global supply chains (which face even more headwinds due to Chinese policy missteps and war in Ukraine) and soaring commodity prices. I do not think this support are will hold I think minimum we are looking at a return to 1450. Most crashes such It took from December the 12th 2007 when it started. to march the 3rd 2009 from top to bottom in the 08 financial crisis for most indices. We are currently in a super high risk uncertain global economic environment with no good news in sight for these types of entities. We are only roughly 3 months into the current market crash for some perspective. There is much more pain on the way.
1.5 YEAR as the INDUSTRY's been SHORTING. Sentiment RUssel 2000 small capitalization companies .
the cycles of growth and fall, aka distribution and collection (accumulating).
the index characterizes how much of private capital in market
15 months of institutions shorting
no private investors , no needed sentiment now , the Fed, wars and conflicts
I predict 1.5 year is enough and it's time for hedge funds and banks to close their short positions and start accumulating
fall 2022 when its gon be the new cycle of enormous rise
as the war ends and the Fed stops talking shit, people will be dragged to put their money into the stock market
look how Nasdaq index falls since January, there's no money in market currently , but it's about turning around in near months
remember my words
AUTUMN 2022
Market Sentiment is the most crucial
