The Russell 2000 index consists of 2,000 small-cap companies, making up the smallest segment of the Russell 3000, which covers approximately 98% of publicly traded stocks in the U.S. Every June the index is rebalanced, adding new companies or removing existing ones.
Currently, the market is focusing on the positive aspects of the data and favoring the demand side. However, the medium-term structure remains trapped in a wide sideways trend, with resistance and support levels acting as key boundaries on the chart.
The Russell 2000 index is highly sensitive to GDP growth, which the Federal Reserve actively manages to control inflation. Consequently, the path of the Russell 2000 is influenced by the trajectory of U.S. economic growth - small caps typically have weaker balance sheets, higher levels of floating debt, lower profit margins, and longer durations, which add to its vulnerability.
The Price Line overlays are Nasdaq100 and SP500.
Trade active:
taking longs now
Comment:
The support level of 1650$ respected. Looks promising. Holding.
I'm not changing my position though. Issues in the American real estate sector. I believe that in the real estate market it's not the end yet and likely we'll see a price bottom later on. If things go south I'll probably sell everything and go 100% bonds and gold- as it will likely signal some trouble.