Small cap stocks can be seen as the engine of the economy. They are on the front line of products, production and sales.
So, if they are getting positive attention, it is a good sign that the economy may well be setting up for the next gear for growth.
The Russell 2000 Index (RTY) is a prime index for small caps and why we follow it both for trading as well as for indicative signals of economic health.
This index is showing some upside right now. But not without risk. So, let’s take a look at the RTY and see how it is shaping up…
Russell 2000 (RTY) in the Buy Zone?
Here’s how the Russell 2000 (RTY) chart is showing an entry into the buy zone…
Russell 2000 Index Futures Futures Contract (RTY) Price and Technical Analysis – Source: TradingView
The Russell 2000 Index futures contract (RTY) daily time frame broke the down trend line and has entered into the buy zone.
The market is now at a high price and has hit an up Fibonacci extension.
It is expected the RTY to form a future high price followed by a bearish push towards the back side of the old downtrend line to form a low price.
At this time, there are no long term/swing trading ideas without having a large amount of risk.
It will be a good idea to turn to the one hour time frame and to look for shorter term ideas in the buy and sell zones.
The Bottom Line
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Keep on trading,
P.S. While the futures markets may provide some big gains ahead, my colleague and expert trader Ross Givens has been working on a different market…