Introduction:The Russell 2000 Index (RTY), which tracks small-cap U.S. stocks, has been underperforming relative to the broader equity indices like the Nasdaq 100 (NQ) and S&P 500 (ES), despite a modest year-to-date (YTD) gain of 5%. In comparison, the Nasdaq is up 14.3%, and the S&P 500 is up 16.8% YTD. This underperformance in small-cap Read More…
Introduction The E-Mini Russell 2000 Index Futures, often seen as a bellwether for small-cap stocks in the U.S. market, is currently positioned at a point where it could swing bullish or bullish with volatility. As all markets around the world continue to surge at a time when political and economic unease is high, technical analysis Read More…
Current Trend and Price Action Moving Averages The price is currently hovering near the 200-day moving average (around 2,100). The 50 MA is at the same price and is acting as additional support to the price for now. Support and Resistance Zones Volume Considerations Probable Scenarios Bullish Scenario: Bearish Scenario: If you have any technical Read More…
Introduction We looked at the break out in RTY two weeks back, and now, the daily chart is forming a pennant chart pattern. The penant formation is a high probability chart pattern that can lead to a big swift move initially which is why we think we could see RTY break its ATH next week or the Read More…
Recap We covered the underperformance in RTY futures a few weeks ago and said that we were getting close to the time that RTY needs to catch up to the greater market. It looks like we are finally at that time now and RTY is on its way up. You can read the previous analysis Read More…
What is leading the underperformance? The Russell 2000 is less weighted in technology stocks compared to the S&P 500 and Nasdaq. Large-cap tech stocks have driven much of the recent market gains, benefiting indices heavily weighted in these sectors. Small-cap stocks, which dominate the Russell 2000, are more susceptible to economic uncertainties too. In contrast, Read More…
