The Russell 2000 has been stuck in a rut for years, but some traders may think the small-cap index has finally achieved escape velocity.
The first pattern on today’s chart is the November 2021 high around 2,460, where prices stalled last November. RUT has gotten above it this month and refused to stay below. Is a breakout finally underway?
Second is the September 25 low of 2,394. Prices tested and held that level last week, which may confirm support is in place.
Third, the index had a bullish inside candle after Friday’s selloff, followed by a bullish outside bar. That may reflect buyers are gaining control.
Next, RUT has apparently broken a trendline that began with the high on October 6.
Finally, consider this weekly ratio chart of the Russell 2000 against the Nasdaq-100. Notice how RUT outperformed in late 2023 and July 2024. Both of those moments saw expectations of Federal Reserve rate cuts. (Such moves often favor small caps.) Notice how the ratio is climbing again at the same time that investors look for more dovishness from the central bank.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart is the November 2021 high around 2,460, where prices stalled last November. RUT has gotten above it this month and refused to stay below. Is a breakout finally underway?
Second is the September 25 low of 2,394. Prices tested and held that level last week, which may confirm support is in place.
Third, the index had a bullish inside candle after Friday’s selloff, followed by a bullish outside bar. That may reflect buyers are gaining control.
Next, RUT has apparently broken a trendline that began with the high on October 6.
Finally, consider this weekly ratio chart of the Russell 2000 against the Nasdaq-100. Notice how RUT outperformed in late 2023 and July 2024. Both of those moments saw expectations of Federal Reserve rate cuts. (Such moves often favor small caps.) Notice how the ratio is climbing again at the same time that investors look for more dovishness from the central bank.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.