Tuesday's Market Minute: Small-Caps See A Big Move

Stocks came roaring back after last week’s sharp dip, with many traders noting strength in Russell 2000 futures. Small-caps have long been the underperformer of the four major equity index futures, but the /RTY has experienced a swift increase of almost 8.5% on heavy volume since Sunday’s open after holding support at the 64-day EMA near 1350. Still, the contract plunged almost 7% last Friday and has yet to surpass last week’s highs, stalling at its 200-day SMA near 1480 during premarket trading. Traders are likely eyeing the area near 1550 to the upside, as it would represent an eclipse of the recent highs from June 9 as well as resistance in the form of the Linear Regression Channel upper line and the Volume Profile Point of Control, which represents the price level with the most trading during the past year. It is important to note that the Nasdaq is the only contract so far to move above the market’s February highs. The other indices have certainly seen major upswings, but they have not been enough to cement the idea that the bulls are back in control. If the rally fails, watch the 64-day EMA and the 50-day SMA (near 1312) for support to the downside.