RUSSELL Rally doesn't seem to seek correction any time soon.Russell 2000 is overbought on its 1D technical outlook (RSI = 73.532, MACD = 34.900, ADX = 27.532) as the monthly candle is already as high as any in the last 12 months, despite being only on the 1st week. This bullish trend can keep going as this is the bullish wave of the long term Channel Up that started in March 2009 (housing bubble). We are already past a 1M MACD Bullish Cross and all 4 major bullish waves before had such a Cross to show. The minimum rise they gave was +81.48% and this is our target (TP = 3,000) until the end of 2025.
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$IWM $RTY : Small Caps Ready to Explode! 💥 Small Caps Ready to Explode! 💥
We will be at ATH's this week: AMEX:IWM AMEX:TNA CAPITALCOM:RTY
While everyone is buzzing about NASDAQ:TSLA CRYPTOCAP:BTC and how they will continue to skyrocket if election results stick and continue to favor Trump, no one’s talking about SMALL CAPS! Remember, during his last term, small caps had an impressive run. Let’s dive into the technicals in my latest video.
In this video, we cover:
1️⃣ Technical Analysis: We’ll analyze charts and multiple indicators, all pointing to AMEX:IWM heading HIGHER. 📈
2️⃣ Patterns: A massive multi-year cup and handle pattern with an ascending triangle breakout is in play.
Drop a comment below if you learned something new or want to explore any topics further.
Stay tuned for more insights and show some love!
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CAPITALCOM:RTY AMEX:IWM AMEX:TNA
NFA
Russel 2000. Rejection at the top, correction on the way?Probable correction on the RTY Russel 2000 index. Rising wedge and failing to break the prior top.
Support on every fibo level to the downside, with an ultimate floor on the monthly lower Mogalef bands the long term sideways channel, and the very long term trend line, all around the 1,600 area
RUSSELL 2000 will finish the year in style on the All Time High.Russell 2000 (RUT) has been giving us a lot of solid signals all year as it is following a highly symmetrical Cup pattern, which delivered last time (May 09, see chart below) an excellent bottom buy trade that effectively hit our 2293 Target:
As the 1M RSI has succeeded at maintaining a sustainable trend above its MA for almost 1 year (which is highly bullish), we make the Cup pattern wider to fit the whole sequence even the start of the 2022 Bear Cycle.
The 1W MA50 (blue trend-line) continues to be the main Support, with the 1D MA50 (red trend-line) the short-term one. We expect a quick test and then rebound towards the end of the year to 2465 (Resistance 2), which is effectively the market's All Time High.
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RUSSELL 2000 to bottom soon on the 1D MA200.Last time we looked into Russell 2000 (RUT) on May 09 (see chart below), we expected a technical pull-back, and even though it gave one more week of upside, the index eventually did start to correct:
As mentioned then, we see similarities with the January - March 2022 Bear Flag but mirrored (Bull Flag). That pattern made a Double Bottom on the 1980 Symmetrical Support. Since however it was the 1W MA50 (blue trend-line) that offered the most recent Support (April 15), we expect the Double Bottom to take place this time on it.
The 1955 symmetrical level would be a fair projection but overall even on the current prices, the index is a solid R/R buy opportunity. Our Target is intact at 2293 (Resistance 2).
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RUSSELL 2000 Bottom of Channel Up. Buy signal.Russell 2000 reached the bottom of the (1d) Channel Up on a symmetric -9.20% bearish leg, like the one before.
It is holding above the MA100 (1d), same with August 25th 2023, which was also a -9.15% decline but the rebound failed to close over the MA50 (1d) and resumed the downtrend.
Trading Plan:
1. Buy on the current market price and as long as daily candles are closed over the MA100 (1d).
2. Sell if a daily candle gets closed under the MA100 (1d).
Targets:
1. 2230 (+13.61% rise like the bullish leg before).
2. 1830 (-15.63% decline from the top, like the March 24th 2023 low).
Tips:
1. The RSI (1d) is on a pattern consistent with -9.20% declines. It is approaching the 30.00 oversold limit.
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Russell 2000 ETF (IWM) ~ December 4H SwingAMEX:IWM chart analysis/mapping.
IWM ETF rally off late October lows on market expectations of the end to Fed rate hikes.
Trading scenarios:
Continuation rally #1 = multiple gap fill / 38.2% Fib / upper range of parallel channel (green) confluence zone.
Shallow pullback #1 = 23.6% Fib / horizontal line (light blue dashed) confluence zone.
Deeper pullback #1 = lower range of parallel channel (green) / 200MA confluence zone.
Capitulation #1 = re-test ~163 bottom.
Russell 2000 (RTY, M2K) Low-Timeframe ShortQuick idea here as we look to get back in a groove with analysis/posts after a very light October. Not going to include a lot of elaboration, but we're looking to take advantage of a swing short (price depending) via a low timeframe (5-minute) RTY supply zone (defining candles not pictured here since sub-15-minute charts cannot be posted). If price approaches the zone hot (expanded range candle vs. grinding action), look to take the trade outright upon penetration of the lower bound (1795.4). If RTY stair-steps higher, forming new pockets of demand between current price and supply, consider taking a confirmation entry (price exit from zone). Stop should be placed a bit above the zone's upper bound. Keep in mind round # psych @ 1800. Targets are 2:1 and 5:1 (look for a fall back to origin of CPI breakout). Finally, US stocks have been very bullish as of late, so shorts fly in the face of current momentum. That said, RTY has consistently been the weakest of the 4 US equity indexes, so if you're going to short one, it's probably your best bet. Have to run, but good luck!
Stay tuned b/c a LOT more ideas are coming soon!
Jon @ LionHart Trading
US Russell 2000 RTY ~ Ping Pong Perpetuity (Daily Chart)CAPITALCOM:RTY chart mapping/analysis.
Russell 2000 still stuck within trading range despite recent rallies across major US indices.
What's on the chart:
Ascending parallel channel (light blue) captures upward trend over multi-decade timeframe
Descending parallel channel (white) frames downward trend from upper to lower range (multi-decade) parallel channel
Horizontal lines (yellow dashed) locks in trading range (June 2022 to present)
Descending trend-line (light blue dotted) highlights pivot support points
Fibonnaci levels establishes key supply/demand zones
Short-medium term outlook:
Neutral-bearish
RTY remains in " Ping Pong Perpetuity " until breakout on either side of trading range
200DMA acting as dynamic resistance, exerting downward pressure
Bullish reversal = rally above 200DMA to switch trend & test upper trading range
SPX - Santa Ralliers: You Better Keep Your Eyes On The ClockIn previous threads looking at SPY:
SPY - Did We Bottom, Or Is Manipulation Coming?
Nasdaq
Nasdaq Futes - You Wanted a Dip For That 'Santa Rally,' Aye?
And ES
SPX ES - Welcome To The Fourth Quarter Rodeo
We've noted that both the extreme bear and extreme bull cases are dubious.
After the five day 8% rally to start the month, we warned that manipulation may be coming. Instead, we got a flat week where the October high was taken on a Friday afternoon.
The important thing for Santa rally believers, who are expecting the all time highs to be taken out, is that we're on what amounts to a pretty tight deadline, with the final day of the December candle being the deadline.
The reason for this is because the indexes went up in a straight line starting the first day of 2023, and this is not likely to repeat itself.
And so, what I believe we're in store for, is not a real Santa rally, but a fairly big 150-200 point retrace starting next week, that culminates in a rally that takes out 4,650 by year end, but goes no further.
That will mean that 2024 is a very unpleasant year for everyone, U.S. election or not.
Perhaps what will stop the Santa Rally from taking the all time highs on the indexes is the looming problems posed to the world by mankind's continued cooperation with and support of the Chinese Communist Party.
The Chinese Communist Party, under former Chairman Jiang Zemin in 1999, launched a full scale organ harvesting genocide and persecution against the 100 million practitioners of Falun Dafa meditation.
Those sins are more eternal and boundless than what Nero and the Romans did to Jesus and his Disciples 2,500 years ago by an infinite degree, for the scale is so much larger, the importance of this moment in history is so much more significant, and Falun Gong's students being true spiritual practitioners.
Xi Jinping, because he has made himself the head of the Party and has continued to hold onto Marxism and Leninism with a deathgrip, has painted himself into a corner that he only has one way out of.
That way is to coup d'etat the CCP and get rid of it like Gorbachev and friends got rid of the USSR. But the clock is ticking. He has to do it before the Wuhan Lung Flame breaches the Emperor's bedroom.
And former Premier Li Keqiang was killed by a heart attack just a few weeks ago, and only in his 60s.
Either way, the CCP is dust in the wind, and so are all the clowns on Wall Street, governments, big corporations, and Antifa/BLM-style scum of society revolutionary groups who have been either providing blood to or taking blood from the Evil Party all these years.
And this means that markets will go up in preparation for the falling guillotine. Because it's ultimately just humans gambling against Gods.
So here's the trade.
I expect next week, and perhaps also the week after, will bring a ~4-5% retrace that sets up a month end rally into a December rally that takes out 4,600.
We won't go sideways, I suspect, but it'll chop up and down and back and forth before finally getting to the point, and so it will probably suck to trade levered ETFs and options.
Still, there's a chance to go long coming up ahead with a target above the July highs to end the year, and that is about as good as she gets, I gander.
Good luck. I hope you heed the caution about "China" and do your part to social distance and wash your hands from communism and all its related scams.
NASDAQ WEEKLY Forecats Analysis for 15.-20.Ovtober.2023Ultimately, this is a market that has plenty of buyers underneath, and therefore it’s likely to see more of a “buy out the dip” mentality going forward
The Euro initially tried to rally during the trading week but got absolutely crushed as bond yields in America continue to be a major driver of markets.
Nasdaq crashed from 15335 Highs down to 14875 as many times forecasted and predicted last week. Watch also my previouse vieos, and read the updates below my other traingview ideas.
RUSSELL 2000 Holding the key Bull Cycle Support. Disaster below?Russell 200 (RUT) has had a big safeguard on the current Bull Cycle following the Housing Crisis bottom in 2009. The symmetrical Zone that was formed on the previous All Time High (ATH) has always held once it transitioned into Support upon periods of corrections (with the natural exception of COVID) and provided the framework for the rebound initiation of the next rally.
This time the previous ATH Zone has been continuously tested since May 2022 and so far has closed all candles above it. October has already entered this Support Zone with the 1M MA100 (green trend-line) right below it and the longer it holds, the sooner it will also enter the Zone. When the 1M MA100 broke during the COVID collapse, the flash crash extended almost as low as the 1M MA200 (orange trend-line).
Naturally the market conditions now are severely different than then, but the Support Zone must hold at all costs. If it breaks, the distress signal that will send may echo across high cap markets, especially the technology sector.
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RTY | IWM | InformativeCME_MINI:RTYU2023
If the price of RTY breaks above the bullish line of 1947.4, it may indicate a bullish signal, suggesting potential upward price movement. In this scenario, the target price could be set at 1964.5.
Conversely, if the price of RTY breaks below the bearish line of 1937.5, it may suggest a bearish signal, implying potential downward price movement. In this case, the target prices could be set at 1932 and 1919.
RTY UpdateHit overbought on RSI and MFI, but I think it's a pump and dump. Expecting a gap up tomorrow, maybe dump on Fed minutes?
Keep in mind RTY can go way overbought or oversold, least reliable of the index indicators. TLT already looks like it's hit bottom, so I don't see a tank coming either way.
How to Day Trade or Swing Trade S&P500 Futures No IndicatorsHey Traders,
So over the years I bout alot of courses about trading the markets. In one course I took I learned about a reversal strategy using candlesticks on daily charts. Although in the past I didn't consider myself a Day Trader I found this strategy to be appealing for it using the Stock Index futures. So now I sometimes do day trade the market if I get the right setup. The good thing about his strategy is that you only need to check the market once a day to see if there is a setup. Then you just place your stop orders and limit orders according to your risk management or you can also use options.
Enjoy!
Trade Well,
Clifford
RTY MFI OverboughtYeah, I said overBOUGHT. That means don't BTFD.
Wanted to post this early since I said BTFD earlier this week. I have NO intentions of going long today. Will post ES and NQ updates later since they are not overbought yet.
Also, I was right about playing GM puts for TSLA earnings, looks to be 175% return on open. I didn't play it, lol. Gonna kick myself on this one, I mentioned it twice before close yesterday.
RTY UpdateCPI pump and dump as predicted, RTY went overbought on RSI with MFI divergence.
Fed meeting minutes at 2pm, unemployment and PPI numbers premarket tomorrow and retail numbers premarket Friday. Garbage stocks didn't even last 15 minutes, lol. PTON shot down so fast I couldn't even catch up to it. Managed to snag a few BYND puts, we'll see where taht goes.
Might snag some CAT puts EOD for unemployment number tomorrow.
RTY UpdateES and NQ MFI are creeping up because they went oversold yesterday but RTY MFI is dropping because it hi overbought this morning. Also, FDAX MFI hit overbought, so high probability of a gap down tomorrow or every index.
ES and NQ might melt up today but watch out for the gap tomorrow and I'd shy away from small caps.
Still all cash, waiting for Friday CPE numbers.
No one is safe when the floor falls out!UBS buys Credit Suisse, central banks liquidity provision, and a massive repricing in rates marked a significantly volatile week. As the storm of bank contagion continues to brew, one index in particular is trading unlike the others!
We’re talking about the Nasdaq here.
Trading higher while its peer indexes get beaten down in a somewhat unusual fashion.
Another way to look at it, since this February, S&P500, Dow Jones & Russell 2000 is down 5%, 7% & 13% respectively, while the Nasdaq is pretty much flat.
In one of our previous posts, we highlight how the ratio of Nasdaq/S&P500 topped higher than the 2000s Dot-com bubble.
While the ratio traded lower after we covered it, this recent move basically put the ratio back to the level when we first highlighted it. The ratio also traded cleanly off the .236 Fibonacci line and the trend support. With the ratio now at the previous resistance level, and extended from the trend line, this could present another opportunity to consider a short.
Interestingly if we use a Logarithm y-axis, the upward trend of the ratio becomes clearer.
Here, we see all 3 ratios at critical resistance levels and away from the long-term trend.
While it’s a bit challenging to pinpoint the exact reason, we think the chorus of lower target rates and more cuts priced in has propelled the possibly interest rate-sensitive benchmark higher. But, when the floor falls out, it doesn’t matter if you can jump the highest! We think the current springboard for the Nasdaq Index can only take it so far and here’s why:
If a true contagion event does play out, then the sell-off is likely not going to discriminate. And looking at the 2000s period, Nasdaq continued to tumble while the fed paused and cut rates.
Of course, we’re not blind to the fact that the 2000s was a whole different era and the crisis was driven by a tech bubble, so the Nasdaq would of course, face a larger correction. Our point here is to highlight that in a true contagion event, sell-offs do not discriminate.
On the flip side, if a contagion event does not play out, the Fed is still faced with Inflation which has been way above its target. Not forgetting the Fed’s dot plot terminal rate at 5.1% and a hawkish Fed chair just days before the SVB bank collapse, if the coast is clear of any banking crisis then the path for further rate hikes or holding rates higher for longer could come back into play. Both of which could trigger a repricing in the Nasdaq.
Given the opportunistic setup in all 3 index ratios, it is possible to establish a short on any of them.
Using the Nasdaq Futures and S&P500 Futures as an example we could:
- Short 5 Nasdaq 100 Futures
- Long 2 S&P 500 Futures
In this trade set-up, the dollar value of the two legs of trade will remain equal, despite the direction in which the Nasdaq or S&P moves. If NQ future moves by 1 point, the short leg of the trade (5 lots of NQ futures) would change by 100 USD. So does the dollar value in the long leg of the set-up (2 lots of ES futures). The same setup is possible with the Micro Nasdaq and S&P500 Futures as well, whereas in the latter case, the 1-point move is equal to 10 USD instead of 100 USD. Trading this spread would be eligible for a margin offset of up to 70%, meaning that the capital required to set up this trade is much lower.
The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
Disclaimer:
The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. A full version of the disclaimer is available in our profile description.
Reference:
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IWM rejection at the 18 monthlyAlthough there is support for IWM between 182-1, I think the real target will be the combination of the monthly BB and 100 ma, around 158-156. Structural trendline (purple) looks right and it's no surprise it showed up at the 18ma exactly to regect the advance.
IWM divided by SPY is a bull flag, so I expect IWM to sell off much more than spy once it breaks out - which looks to me like it could happen this month.
Good luck!