Thursday's Market Minute: Is the Russell's Win Streak Starting to Cool?

Russell 2000 futures (/RTY) have logged some major gains recently, surging +21% off June lows and notching 17 green candles during the past 24 days.

The small-caps have seen some interesting movement during the past two weeks that took price above the 2,000 mark as well as some of the commonly followed longer-term moving averages, such as the 252-Day Exponential and the 200-Day Simple. This is worth noting because shorter-term moving averages tend to be more responsive to changes in price, but longer-term moving averages hold greater significance as they encompass more data. Price has since given up the 200-SMA as of yesterday’s close, snapping a six-day green streak with a -1.6% drop.

Price now finds itself in the thick of a volume node (a zone of heavy trading) according to the yearly Volume Profile study, so we could be in for some chop in this area. Another thing to consider is the Relative Strength Index (also known as RSI, which measures momentum) crossed out of its overbought territory, which could suggest the speed of this upward move is starting to cool.

If the move upward does start to wane and falter, look for possible support near the +1 Standard Deviation Channel near 1958. For other potential resistance and support, watch the 200-SMA near 2002 and the 252-EMA near 1971, respectively.

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