The small fry stocks of the Russell 2000 (RTY) futures market have been on a tear lately…
As a result, this market hit the limit we were monitoring for the last two weeks for a move of over 800 ticks.
Now that the limit has been hit, however, we need a new game plan for this market.
So, let’s check in on RTY to see where it stands now and where we want to see it go before getting involved again…
The RTY Futures Market Review
Here’s how the chart is setting up for the Russell 2000 futures contract (RTY)…
The RTY one hour time frame is in an up channel, with the market near the top of the channel.
It will be a good idea to wait for the market to fall back down bearish towards the bottom of the channel and look for long ideas towards the top of the channel.
Entry: Counter trend line break bullish near the bottom of the channel.
Stop: In the sell zone.
Limit: Near the top of the channel.
Once or if the market falls back down towards the bottom of the channel and gives an entry, and as long as the market stays above the bottom of the channel, it will be a good idea to turn to the five minute time frame and look for long ideas towards the top of the channel.
The Bottom Line
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