The US stock market continues to vacillate up and down, with the start of today’s session showing some upside across the indexes.
But one index that’s in an identified downtrend in a trading channel is the Russell 2000.
This index tracks the smaller stocks in the US market, and we’ve found a lot of success here in the past.
Despite the bearish trend, there may well be some upside in the making, so let’s look at our analysis for the Russell 2000 Index futures contract (RTY)…
The Russell 2000 (RTY) Market Analysis
Here’s how the chart is setting up for the Russell 2000 Index futures contract (RTY)…
And here’s how we see a trade potentially reversing out of the sell zone and perhaps shaping up on the bull side…
The RTY daily time frame is in a down channel.
The market hit the bottom of the channel and is now pushing bullish towards the top of the channel price point 1,904.20, about +1,315 ticks above the market.
It will be a good idea to turn to the one hour time frame and to look for low prices in the buy zone.
The Bottom Line
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Keep on trading,
P.S. While the small-cap stocks of the Russell 2000 Index may provide some big gains ahead, my colleague and expert trader Ross Givens has been working on a different market…