Thursday's Market Minute: Resilient Russell 2000 Now Near A Technical Top

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Russell 2000 futures diverged from the other three major equity indexes as they floundered in recent weeks, with the small-caps’ trend direction looking far more sideways than downward. When other indices were making major new lows on Feb. 24, the Russell’s reaction was much milder; its new low was only about -0.5% lower than the previous intraday spike on Jan. 24, while the /ES was down as much as -2.6% during the same time. This is important because the Russell is regarded as more of a risk-on asset than other indices, and if it starts showing strength it could be a sign markets are starting to calm.

Either way, those extreme lows didn’t stick, and now equity bulls have enjoyed a sizeable bounce. But now price is coming back to the recent highs near 2,080, which is roughly in convergence with the downward-sloping trend line from the yearly highs in November to January’s high close near 2,270. Some other noteworthy potential sources of resistance include the yearly -1 Standard Deviation Channel near 2,052, the 50-Day Simple Moving Average near 2,090 and the 63-Day Exponential Moving Average near 2,099. To the downside, watch the 21-Day EMA near 2,032.

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This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.