Last week, we looked at the Russell 2000 Index (RTY) futures market as it was bumping up against its short term down trend line.
Well, the market pulled back and is now at the bottom of its up channel again.
From this point, it could go in either direction, but we still want to see confirmation one way or the other.
So, let’s take a look at the Russell 2000 Index futures contract again today and see how it’s setting up…
RTY Back at Key Level
Here’s how the chart is shaping up this week…
The RTY daily time frame is in an up channel. The market is near the bottom of the channel.
It will be a good idea to wait for the market to close above the short term down trend line before turning to the one hour time frame and looking for long ideas.
If the daily time frame closes below the bottom of the channel, it will be a good idea to turn to the one hour time frame and to look for selling ideas in the sell zone.
At this time, the research says it is better to be out of the market wishing to be in versus being in the market wishing to be out.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks…
But I have been working on a special strategy for identifying great stocks that you might want to learn more about.
If you’re interested, check out the important P.S. below…
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more!
Keep on trading,
P.S. I have been working with my team to find what I call “marked stocks.”
These are stocks that are potentially setting up to generate big gains… And you need to get in on them with me.
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