Here is a dissected daily chart of Russell 2000 futures with important levels to watch. As of today, the index remains the weakest among the others. Last week it tested an important trend line but managed to close above it. The index has an interesting behavior that could be used to trader's advantage. For example, it may be in a catch up mode and trend well while the rest of the indices are aimlessly chopping or it may show a hint where the rest of the indices will be heading.
Say, as an investor where do I put my money to work if I can see the Nasdaq and S&P 500 are at all time highs? The Russell is far from the all time highs and has plenty of upside potential.
I drew a few projected areas above and beyond the current action. In case the prices break above that would be a nice upside trend to fill the projected area. In case of a breakdown of the trend line the price can fill the existing area and still find enough buyers to remain inside.
Let's watch the price development next week. Being close to the upper edge of the existing balance the upside potential is there. The only warning sign is a notable negative divergence.
04/21/2019
Say, as an investor where do I put my money to work if I can see the Nasdaq and S&P 500 are at all time highs? The Russell is far from the all time highs and has plenty of upside potential.
I drew a few projected areas above and beyond the current action. In case the prices break above that would be a nice upside trend to fill the projected area. In case of a breakdown of the trend line the price can fill the existing area and still find enough buyers to remain inside.
Let's watch the price development next week. Being close to the upper edge of the existing balance the upside potential is there. The only warning sign is a notable negative divergence.
04/21/2019
