Small Stock Set to Sink?

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)…

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

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

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.

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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…

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

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