Uptrend Started After Liberation Day - All Has Broken BelowThe US markets have been described as “on a rally” for quite some time. I would not agree if it is meant to describe the overall US market, but would agree if it refers specifically to AI or tech stocks. Why?
Among the four major US indices, the Russell—representing a much broader base of US-listed companies—continues to struggle to break above its high from last year, even though the others have far surpassed it. In fact, it has since corrected by 9.5% since its all-time high just last month.
After that, the other indices are also following suit only in the past few days, breaking below this uptrend that started in April.
Russell has taken the lead and has broken below this trend in late October.
The earliest clue came from the Russell Index, where many suppliers of the Magnificent 7 companies are also part of Russell 2000 components. When the Russell—or smaller-cap companies—starts to weaken, it often reflects broader market pressures that may eventually spill over to the rest of the indices or vice versa.
Video version on the process of how I monitor the four indices and then narrow it down to the individual index.
Micro E-mini Russell 2000 Index
Ticker: M2K
Minimum fluctuation:
0.10 index points = $0.50
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
