The stock market continues to fluctuate on a day by day basis…
This includes the smaller cap stocks of the Russell 2000 Index (RTY) futures market, which is the subject of my latest TradingView idea.
The market is currently at an area of strong resistance, which could push the RTY lower again. But the bulls could also take back control…
So, today, let’s look at what may come next for the small cap stock market as tracked by the RTY.
The Russell 2000 Index (RTY) Market Evaluation
Here’s how the chart is setting up for the Russell 2000 (RTY) futures contract market…
The RTY daily time frame is in a downtrend. The market is hitting the downtrend line. At the same time, the market is hitting an up Fibonacci extension price point 1890.50.
Usually when this happens, the market has a bearish reaction. But if the market continues to push bullish and breaks the downtrend line, it will be a strong sign the buyers are taking control.
If the market cannot break and close above the downtrend line, it is expected
that the sellers are taking control and will push the market back down.
As long as the market stays below the daily downtrend line, it will be a good idea to turn to the one hour time frame and to look for high prices in the sell zone.
The Bottom Line
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Keep on trading,
P.S. The crude oil and energy markets continue to provide many opportunities that my colleague and expert trader Anthony Speciale continues to focus on…