Here might be an interesting short term setup for the Russel2000.
Lets check the Facts:
Rsi(5) >96; first time since November 1998. The sample size of the occurences is pretty small. Februar 1991 and May 1997 the index kept going unabated, other occurences showed drops >2%
Distance between ma20 and price is at an historical high (see macd1,20 pannel). As you can see the price often re-test ma20 either via time (choppy sideways) or a declining market.
Best thing to do would be either a short against a reversal high or a short via open range breakout. Do not just simply short as this trade is against the main trend. Please consider avrg. daily ATR in % (1 year) as your sl.
As the Russel2000 has higher beta stocks than the SPX and DJI it is the most promising short among the US-Indices at the moment.
2/3 of the Position should be scaled out around 1295 (green line, 4% from Fridays high), rest should be in play if the market continues to fall.
Dont forget that trades sometimes need time to work, so wait for your signal.
Lets check the Facts:
Rsi(5) >96; first time since November 1998. The sample size of the occurences is pretty small. Februar 1991 and May 1997 the index kept going unabated, other occurences showed drops >2%
Distance between ma20 and price is at an historical high (see macd1,20 pannel). As you can see the price often re-test ma20 either via time (choppy sideways) or a declining market.
Best thing to do would be either a short against a reversal high or a short via open range breakout. Do not just simply short as this trade is against the main trend. Please consider avrg. daily ATR in % (1 year) as your sl.
As the Russel2000 has higher beta stocks than the SPX and DJI it is the most promising short among the US-Indices at the moment.
2/3 of the Position should be scaled out around 1295 (green line, 4% from Fridays high), rest should be in play if the market continues to fall.
Dont forget that trades sometimes need time to work, so wait for your signal.
Trade active:
Minimum target is reached >2.35% from the top. Trade is set to BE
Trade closed manually:
Trade closed due to the Italian constitutional referendum on the weekend. Target was reached.