US2000 trade ideas
Selling Russell 2000 here for a pullbackOverbought, top of its volatilty range, due a pullback, good risk/reward
Russell 2000 long targetThe 2357 area looks good as a long target. This is the 100% fib retracement level and also resistance from the upper band of a trendline from the 2016 - 2018 uptrend. I am not suggesting that price will reverse here, but I am preparing for some sort of impulse correction down from that level which should setup fib levels for potential entry longs. That would be how I will be playing it.
RUT - reversing in a massive CUP & HANDLE pattern?
Russell looks like reversing - many signs that 2174 could be a TOP in place - see my previous idea
BUT the reverse has been very SLOW so far
it looks like a massive top reversal curve or CUP & HANDLE pattern
it could be turning in a massive channel till Friday next week (options expiry) or beginning of FEB
RUT TOP? divergences & harmonic patterns, short from 2174
divergences on main 1W 1M time frames
Wolfe wave on 12H time frame
many divergences on 12H timeframe
spike in sell volume on 1H crossing 55WMA
RUT 60% Crash? Contrarian ViewRUT has been on a tear lately but this could end badly.
Looking at the chart, we can see similar ending patterns like we saw in Mar of 2000.
The Fib retracement at .61 (if RUT crashes) will be similar to the one in 2000 as shown in the chart.
Do your research before investing as this is not an investment advice.
RUT/SPX ratio is just a play on commodity pricesIn short, Russel has more exposure to material prices, and this is reflected in the ratio of the russel to the S&P, which looks extremely similar to the combined price of oil, copper, and soybeans (just as an example of a simple commodity basket).
RUT End Of Week EvaluationTrend Analysis:
The current trend is defined by the last price and it's relationship to specific moving averages.
Check the MA strategy for more specific suggestions.
Weekly: The relationship to the primary trend MA is bullish. The price in relationship to the other averages suggest long positions
Price Action:
Weekly: The average price range currently is 82.8169 points/ticks/pips. Prices are currently 4.114x the normal trading range. Prices are equvialent to 4 or more days away from the trend average. Prices can suddenly stall and move sideways while awaiting the averges or transition directions suddenly.
Prices currently are trending and not in consolidation.
Standard Deviation
Weekly: Standard deviation suggests a range from 1928.24 to 2318.159 for the following week.
Calculated Price Strength:
The strength of the trend in conjunction with specific averages.
News announcements can change the strength and directional attitude.
Weekly: Trend strength suggests trading between a range of 2123.20 to 2237.65 for the following week.
Price Projection:
The price action has generated a projection signal for the underlying.
Weekly: Price currently displays (if strength and attitude continue) a desire to move toward 2170.05
If strength and attitude continue, it could take between 5 to 10 trade periods (weeks) to reach the projection.
Indicators Summary.
A collection of technical indicators whose directional attitude has been summarized.
Weekly: Out of the cumulative indicators monitored, 100.00% are bullish, 0.00% are bearish, 0.00% are neutral
The CCI indicator trading strategy suggest the following:
Weekly: Very strongly bullish - long entries.
Confirmation Signal
6 indicators combined to confirm entry/exit.
Weekly Bullish - Open directional trades
RUT (RUSSELL 2000) - EW analysis - 4th wave correctionRUT - It completed the 3rd wave upside of the impulse cycle and correcting down in 4th wave, which expected to go down up to 2000 level. It is good level to enter in buy set up for next up cycle for new high.
Give thumbs up if you really like the trade idea.
US2000Align prices with resistance areas to sell with the trend
NOTE: the market is for reference only, absolute cut-loss is always observed
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Wishing everyone a happy and happy weekend!
Small Caps are not OverboughtWhile small caps have been one of the best performers lately, they are still far from being overstretched on a relative performance basis . Reopening of the economy in the 1H of 2020 can reaccelerate the outperformance of the cyclical components while stocks that have been leading during coronavirus will lag behind.
RUT End Of Week Evaluation*** Comments prior to evaluation summary ***
Trade carefully this week. The Stochastic on multiple time frames 98 or greater. While yes there is room for upward movement, this generally indicates possibility of a stall or trend change.
Trend Analysis:
The current trend is defined by the last price and it's relationship to specific moving averages.
Check the MA strategy for more specific suggestions.
Weekly: The relationship to the primary trend MA is bullish. The price in relationship to the other averages suggest long positions
Price Action:
Weekly: The average price range currently is 79.88 points/ticks/pips. Prices are currently 4.28x the normal trading range. Prices are equvialent to 4 or more days away from the trend average. Prices can suddenly stall and move sideways while awaiting the averges or transition directions suddenly.
Prices have broken through the high value of the consolidaiton range.
Standard Deviation
Weekly: Standard deviation suggests a range from 1914.02 to 2269.28 for the following week.
Calculated Price Strength:
The strength of the trend in conjunction with specific averages.
News announcements can change the strength and directional attitude.
Weekly: Trend strength suggests trading between a range of 2091.66 to 2202.05 for the following week.
Price Projection:
The price action has generated a projection signal for the underlying.
Weekly: Price currently displays (if strength and attitude continue) a desire to move toward 2141.02
If strength and attitude continue, it could take between 5 to 10 trade periods (weeks) to reach the projection.
Indicators Summary.
A collection of technical indicators whose directional attitude has been summarized.
Weekly: Out of the cumulative indicators monitored, 100.00% are bullish, 0.00% are bearish, 0.00% are neutral
The CCI indicator trading strategy suggest the following:
Weekly: Very strongly bullish - long entries.
Confirmation Signal
6 indicators combined to confirm entry/exit.
Weekly Bullish - Open directional trades
The Crash was anticipatable !!One of the beautiful theories that I've learned and I want to share is the Dow theory Non-Confirmation . Using specific pairs of indexes and reading them in comparison , as a technician that uses momentum oscillators I like to see disproportions and divergences and if we apply what we know to this study we'll find that the Dow Theory Non-Confirmation is all about this logic , we see in this pair of RUSSEL 2000 and S&P 500 that a non confirmation happened just before the crash and happened after it , it's a divergence between tops and bottoms . While the S&P 500 succeeded to create a new high the RUSSELL 2000 shows us a Lower high and an exhaustion this could be a great signal for those who like to short the market or for buyers to keep an eye on their positions . For the second one that happened just after the crash you'd see that the market continued his trend to create historical highs but it was also an opportunity for Investors and Traders ! . What differentiates them ? .
Here a technician can make good of his knowledge and create a complete setup , for me using just classic resistance and support approach we see clearly that while in the first non confirmation case we got a Support broken at RUSSELL 2000 exactly the same time market has just broken an UPtrendline in S&P500 which is a bearish Confirmation for the figure and a complete setup , Other technicians can find other premature signals that's the beauty of technical analysis .
So what about the second non-confirmation setup ? we have exactly the inverse situation we got market that find support on an old high of the RUSSELL 2000 and the S&P500 also on his uptrendline , it was a complete setup to Go long .
I suppose that I didn't give something new for some experienced Traders but it could be useful for other , for me I see Beauty .
Russell 2000 Index, Weekly Daily Chart Analysis For Jan 4, 2021Technical Analysis and Outlook
The small-cap Russell 2000 was the big star this week with a decent 5.9% gain. The index on its way to Key Res $2,112 , and our Inner Index Rally $2,140 respectively, also, Outer Index Rally $2,180. The short term downside support is tapped at Mean Sup $1,950 providing an excellent ball out buying opportunity. To continue the rest of the market story, see the 'Weekly Market Review & Analysis For January 4, 2021" at the usual site.
US2000 RSI divergenceUS2000 shows RSI divergence on the daily chart. In my opinion the price will fall to February 2020 highest price around 1700.
Open: Market open
SL: 2155
TP: around 1700
