Turnaround Time for Small Cap Stocks?

Stocks are still somewhat unsettled, and performance has been mixed so far this week. 

But in particular, I’ve been watching the developments in small cap stocks, which have now broken out into the buy zone.

The market to keep an eye on is the Russell 2000 Index futures contract (RTY).

So, let’s check in on our current analysis on this important contract and see what’s what… 

Russell 2000 (RTY) in the Buy Zone

Here’s how the Russell 2000 Index (RTY) chart is showing the potential path forward for a bullish trade…

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

The 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 that the RTY will form a future high price followed by a bearish push towards the back side of the old down trend 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 look for shorter term ideas in the buy zone.

The Bottom Line

There are multiple ways to trade the markets… But I have been working on a special strategy for identifying great stocks that you might want to learn more about. 

If you’re interested, check out the important P.S. below…

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. I have been working with my team to find what I call “marked stocks.”

These are stocks that are potentially setting up to generate big gains… And you need to get in on them with me.

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.