Buyers or Sellers Taking Control of the Russell 2000?

Is the small cap stock index in the Russell 2000 Index (RTY) setting up for selling or buying?

There are signs setting up on both sides…

And they could lead to either bullish or bearish trade opportunities. 

So, let’s look at the RTY today and see whether the sellers or buyers are taking control of the market…

The Russell 2000 (RTY) Market Review

Here’s how the chart is setting up for the Russell 2000 (RTY) futures contract market…

Russell 2000 (RTY) Futures Contract Price and Technical Analysis – Source: TradingView

The RTY one hour time frame is in an up trend, with the market making higher highs and higher lows.

However, the daily time frame shows signs of the sellers bringing the market down.

It will be a good idea to wait for the market to break and close below the short term up trend line before looking for selling ideas.

Entry: Counter trend line break bearish in the sell zone.

Stop: In the buy zone.

Limit: The limit is not ready yet. It will be the next down Fibonacci extension.

Once or if the market enters into the sell zone, and as long as it stays in the sell zone, it will be a good idea to turn to the five minute time frame and look for short Tunnel Trader / Destination Trader / Chandelier Trader ideas towards the one hour Fibonacci extension.

The Bottom Line

For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.

I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.

And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!

Keep on trading,

P.S. Beyond the energy markets, I am finding great potential trades from my top stocks that I present on an ongoing basis in my premium trading service, Josh’s Top 5.

To learn more, click here.

Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

Leave a Reply

Your email address will not be published.

Stop wondering what direction the markets are headed! Sign up right now to get Josh’s Daily Direction straight to your inbox each morning before the trading day even begins. Best of all – it won’t cost you a dime.