$IWM $RUT - Small Caps Under Pressure
As the trade war heats up, risky assets are getting hammered, and one area where this is evident is in small cap stocks.
On a technical basis, small cap stocks have been deteriorating. Since May, prices have fallen below both the 10-Day and 50-Day EMAs, with a deteriorating MACD to back it up . Furthermore, prices have suffered from lower highs and lower lows since that same time, with no relief in sight.
We believe that as the geopolitical landscape becomes more hostile, and global macro pressures mount, there will be more downside for the $RUT in the near term.
On a technical basis, small cap stocks have been deteriorating. Since May, prices have fallen below both the 10-Day and 50-Day EMAs, with a deteriorating MACD to back it up . Furthermore, prices have suffered from lower highs and lower lows since that same time, with no relief in sight.
We believe that as the geopolitical landscape becomes more hostile, and global macro pressures mount, there will be more downside for the $RUT in the near term.
Weekly Chart: Death Cross Between 10-Day and 50-Day EMA;
Daily Chart: Death Cross Between 50-Day and 200-Day EMA; and
4HR Chart: Death Cross Between 50-Day and 200-Day EMA
Small caps continue to deteriorate which is not a good sign for risky assets across the asset spectrum.