US Small Companies Index ‘Russell 2000’ in Critical Trend!
Let's take a look from a Fundamental and Technical perspective;
In 2020, the middle band (main trend line) of the logarithmic rising channel was broken and the upward movement had continued since then. Today, however, the same critical support level is being tested again.
If it cannot hold at this level, a long-term trend break may occur. This would significantly increase the risk perception in Russell 2000 companies.
What is Russell 2000?
It does not include large technology giants such as Nasdaq or S&P 500, but small and medium-sized companies that hold the real pulse of the US economy.
These companies are more fragile and more vulnerable to economic fluctuations.
The spread of anti-Trump protests shows that small businesses are starting to be affected both physically and economically.
The prospect of no interest rate cut by the Federal Reserve (FED) is crushing these companies under high borrowing costs.
The contraction in consumer spending can directly hit the profits of these companies because they are dependent on the domestic market.
Possible Scenarios for This Week:
🔴 If the protests deepen and the market panics:
If a break below $180 comes, the $170 support level is tested.
With panic sales, the $150 - $160 region, which is the lower band of the channel, may come to the agenda.
🟢If the environment calms down and economic data signals a recovery:
Strong purchases come from the middle trend line.
$200 - $210 band can be targeted.
In short, support is now being tested, if it breaks, the risk of serious decline is on the table.
Let's take a look from a Fundamental and Technical perspective;
In 2020, the middle band (main trend line) of the logarithmic rising channel was broken and the upward movement had continued since then. Today, however, the same critical support level is being tested again.
If it cannot hold at this level, a long-term trend break may occur. This would significantly increase the risk perception in Russell 2000 companies.
What is Russell 2000?
It does not include large technology giants such as Nasdaq or S&P 500, but small and medium-sized companies that hold the real pulse of the US economy.
These companies are more fragile and more vulnerable to economic fluctuations.
The spread of anti-Trump protests shows that small businesses are starting to be affected both physically and economically.
The prospect of no interest rate cut by the Federal Reserve (FED) is crushing these companies under high borrowing costs.
The contraction in consumer spending can directly hit the profits of these companies because they are dependent on the domestic market.
Possible Scenarios for This Week:
🔴 If the protests deepen and the market panics:
If a break below $180 comes, the $170 support level is tested.
With panic sales, the $150 - $160 region, which is the lower band of the channel, may come to the agenda.
🟢If the environment calms down and economic data signals a recovery:
Strong purchases come from the middle trend line.
$200 - $210 band can be targeted.
In short, support is now being tested, if it breaks, the risk of serious decline is on the table.
For more you can follow me on X. @UgurTash
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For more you can follow me on X. @UgurTash
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.