Thursday's Market Minute: Russell 2000 Misses The Equity Party

Russell 2000 futures sank 1% yesterday, once again showing an inverse relationship to the other major equity index futures that all finished in the green. This sort of disparity, especially while other indices are making new all-time highs, is worth watching as further weakness in the riskier small-caps is a sign that there could be a broader risk-off sentiment on the horizon. The /RTY finished yesterday on a -3.3% losing streak during this short holiday week, dropping after failing to break above its previous highs from early June and forming a range between a double-top pattern near 2340 and near 2206 around the lows from mid-June.

The contract also fell below its 21-Day Exponential Moving Average, 50-Day Simple Moving Average, and 63-Day EMA in quick succession within the past few days, with the 21-EMA itself also turning from an upward slope to downward. Additionally, the MACD and Parabolic SAR both saw bearish crossovers, which could potentially signal a change in trend. Keep an eye on the yearly Volume Profile Point of Control near 2227 as well as the lower end of the trading range for support, while the 50-SMA near 2269 and the 21-EMA near 2292 could provide resistance.

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