Small Caps Back to Buy?

Small cap stocks can be seen as the engine of the economy. They are on the front line of products, production and sales. 

So, if they are getting positive attention, it is a good sign that the economy may well be setting up for the next gear for growth.

The Russell 2000 Index (RTY) is a prime index for small caps and why we follow it both for trading as well as for indicative signals of economic health.

This index is showing some upside right now. But not without risk. So, let’s take a look at the RTY and see how it is shaping up…

Russell 2000 (RTY) in the Buy Zone?

Here’s how the Russell 2000 (RTY) chart is showing an entry into the buy zone…

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

The Russell 2000 Index futures contract (RTY) daily time frame broke the down trend line and has entered into the buy zone. 

The market is now at a high price and has hit an up Fibonacci extension. 

It is expected the RTY to form a future high price followed by a bearish push towards the back side of the old downtrend line to form a low price. 

At this time, there are no long term/swing trading ideas without having a large amount of risk. 

It will be a good idea to turn to the one hour time frame and to look for shorter term ideas in the buy and sell zones.

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. While the futures markets may provide some big gains ahead, my colleague and expert trader Ross Givens has been working on a different market…

Click here to get his research on an early-stage metaverse stock that could be one of the biggest tech millionaire-makers of the decade!

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.