US2000 Up move continue bounce off trendlineUS2000 Up move continue bounce of trendline. Short term and long term limits
USSMALLCAP2000CFD trade ideas
Is Another Move Coming for the Russell 2000?The Russell 2000 had a sharp rally in late 2020 and early 2021. Now it may be setting up for a similar move.
Notice the triangle forming on the small cap index recently, which is interesting for two reasons.
First, it shows that prices are squeezing into a range. Ranges can be followed by breakouts.
Second, it shows that RUT made a higher low in September versus August. This is noteworthy because the S&P 500, Nasdaq-100 and Dow Jones Industrial Average all made lower lows this month. Higher lows and modest drops amid periods of volatility are signs of accumulation and relative strength.
Speaking of relative strength, this chart shows how RUT’s relative strength has improved since mid-September. (See our Smart Relative Strength script.)
Next, the small-cap index has been holding support at its rising 200-day simple moving average (SMA).
Finally, the macro backdrop may favor RUT as interest rates rise and investors pivot back toward cyclical reopening stocks. Traders may want to keep a close eye on this chart for a potential breakout if the broader market stabilizes.
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The market is talking. Can YOU hear it?Pareto's law says that roughly the top 20% of the market constituents should roughly represent 80% roughly of the overall market cap, and vice versa: the bottom 80% of constituents will represent 20% of the overall market cap.
When price seems irrational, and higher cap stocks start to represent more of the market than previous decades, and thus are given a higher weight in the major indices, it can be very useful to look at a large portion of the bottom 80% to get a more rational prospect of market value.
Russell 2000 represents many small and mid cap stocks, which are mostly given low weights in large portfolios and indices, compared to larger cap stocks such as TSLA or the FAANG stocks.
We get an interesting peek at the overall market value if we look at these companies in the median of the market, in addition to accounting for money supply expansion.
We can see that if we account for inflation, the relativity of the money supply in relation to the Russell 2000 has always topped out at about where it is now, in the past 20 years.
The price seems to be disconnected from value at the moment, off by a factor of 2 or 3. For the larger caps that are not included in this index, this overpriced factor is probably larger, maybe 5 or 10, given the current conditions of an irrationally large-cap dominated market.
Let me know what you think.
Do you think the dip of 1200 in 2020 was a valid retest?
Or was it just forced participation, coercion by the FED?
Do you think that, given such coercion, we're in for a further lower retest when said coercion becomes less effective?
Cheers
US-market correction ahead of us?Discussed is our weekly update of the risk model for the US market.
Price action of the major US market indices and relevant indicators advise caution.
See our homepage for daily updates on trading recommendation for the major US-market indices and ETF's:
www.js-techtrading.com
Bearish RUT, hop in 3x ETF TZA, Bearish GartleyUnderestimated previous confluence area, but HODL because RUT finally dropping and will hit lower lows. Look at current trend and it is obvious that history will most likely repeat itself. Sell when RUT RSI hits below 30. Do not hold too long or will get burnt. Bearish Gartley proving to be correct and trend will very likely continue down much further for following day(s)
New trading Strategy upgrade -Hi traders, this is my personal trading idea only. Please give an AGREE/ LIKE, my trading strategy is Price Auction - using Chart only, your comments are highly welcome. My chaos drawing is not to predict and guess the further, it is my plan where we are on the chart and how we shall trade on what we see. Good luck guys.
Russell 2000 - Elliott waveIt looks like we are about to enter a 5th wave with a target of 3600
but now we are still in the 4th corrective wave . we have to make 5 waves up to confirm resuming the uptrend
FYI : I am not a professional analyst and those are just a personal ideas to get more experience , your feedback is highly appreciated
Russell 2000 at a key point. Where is the market going next?The Russell 2000 (RUT) is at the lower support area of a bound trading range since February. Two key indicators already broke down this week. 1) The index dipped below its 200d moving average today. 2) The index is made up of small-caps, and the ratio of performance between small and large caps broke down this past week as well.
It's either time for small-caps to head back up, or this could be the start of a lower move.
Bullish: The US dollar strengthening for small caps is bullish. The 10y Treasury Yield remains low, keeping borrowing rates low for small, but growing companies. Employment data continues to strengthen, showing companies of all sizes, but especially small-caps across recovery sectors are hiring back employees to meet demand.
Bearish: The Fed is talking about a possible start to tapering this year. There are indications that the economic recovery is slowing. Retail Sales were lower than expected. Manufacturing Indexes showed a slow down this week. Small-caps are the most sensitive to changes in direction for the economy.
