RUSSELL, Decisive Situation, Important Conditions To Fulfill!

Hello, Traders Investors And Community, welcome to this analysis about the recent events, the current price-formation and what we can expect the next days and hours from on of the major leading market-indices we have in the stock-market the RUSSELL 3000. As it is building 98 % of the US-economy with its 3000 major companies it is an important index which should be contemplated when looking on the overall stock-market-situation currently developing and in the end make better decisions in trading, as we saw the index going up since the heavy corona-breakdowns it is now on a historical step into confirming the further bullish trend or falling below important support levels to confirm bearishly. Compared to the S&P 500 the index is not that strong at the moment because the uptrend is not that volatile and with more breaks than the comparison index S&P 500. Right now the whole market is in a fundamental decisive phase, I made already analysis about this subject which I highly recommend you to watch when going on my account.

When looking at my chart we can examine that the index now confirmed bearish two major trendlines which you can see marked in blue to the downside which showing up as solid bearish signals, the more trendline of such a sort are broken the more increasingly possible gets the bearish continuation possibility. Furthermore, we have the 60- and 800-EMA that you can see marked in orange and black in my chart which serving as significant resistance levels in the structure, currently the index is testing the 60-EMA and falling below it which can result in more bearish decline and a test of the 800-EMA, when this EMA can not hold and the index falls below it this will show one more confirmation to the downside. The next important support and the last line of support is the third rising uptrend line in blue which definitely needs to hold to establish solid support here and show the possibility for a bullish recovery and confirmation on the plan when this last support line does not hold the bearish pressure will increase heavily in the bearish ground you can see marked in my chart.

The current situation is a historical situation where not only the RUSSELL but the whole stock-market has to decide in which direction it is going and as there is coming news about a second corona wave and new restrictions resulting out of it the remaining uptrend should be looked at with a critical eye, also this uptrend establishing is till now only a recovery where many stocks did not provide any new highs and a vast majority of the market is still below the all-time-high conditions, in comparison to the economy it has to be noted that there are big differences between the real economy and stock-market as the real economy is still damaged out of the corona-crisis and the stock-market making gains, to succeed further in this environment and providing possible new highs the real economy and stock-market have to gain simultaneously otherwise the rally will be a speculative driven rally, therefore, we should keep in mind a possibility to show more bearish pressure and be prepared on this scenario to profit out of possible occasions arising out of it.

In this manner, thank you for watching, support for more market insight, and all the best!
The high destiny of the market is to examine rather than to hypothesize.

Information provided is only educational and should not be used to take action in the markets.