RUT is practically neutral at the moment as the 1D Channel Down (RSI = 46.549, Highs/Lows = -4.0275, B/BP = -30.2779) keeps the index bearish while 1W (excluding the early Dec - late Jan extreme) supports it (RSI= 49.965, Highs/Lows = 12.4371) from a greater fall. So far Russell is a no-action asset but we are willing to go long on the upward break-out of the 1D...
The Russell 2000 Index, which tends to move before the S&P 500 Index (SPX) has broken below support with strength.
On the chart above we can see that the RUT broke through EMA50 and EMA100 like hot butter. This can lead to a retrace as far down as 0.618 Fib. just to start, it can go lower.
The MACD is entering the bearish zone with plenty of room left for more...
WARNING: Investing in single equities comes with balance sheet risk, if you want to invest in single equities make sure you understand the volatility of the asset, catalysts, your portfolio is in some way diversified and you have strong risk management.
While the large-cap stock indexes like the $SPY $SPX $QQQ $DIA have been running higher, they are now at resistance and should stall out or at least slowdown. Small-cap stocks have been building a base for a mega rally that could make the large-cap run look like chump change!
See more analysis on the small-cap sector: Click Here
From a macro top-down framework, the current environment heavily favors the bears. The leading data continues to show expected weakness in the economy over the coming 3-6 months.
I would love to hear your feedback, have a wonderful day!
Hi guys, thank you for the support! I will have this analysis out each weekend as well as daily updates throughout the week, if you guys like what I'm doing hit the "follow" button and you will get a notification each time I post a video or chart!
Have a great day everyone!
Data out this month show slowing business activity & new orders relative to the prior month, compounded with an unexpected slowdown in wage growth, forecasting a pullback from here with a complete patterns is logic.
My concerns of anything more than a pullback are subsiding, Chinese PMI is in expansion once more which is confirming that the majority of poor economic performance is likely finished.
Over the next 6 months we expecting to see hard data underperform, compounded with a rising dollar it is a headwind for equities.