Small Caps Are Struggling: Check Out This Technical Analysis

146

The S&P 500 keeps hitting new highs, but the Russell 2000 small cap index hasn’t been so fortunate.

RUT has gone almost four months without a new record level. In contrast, the Dow Jones Industrial Average and Transports haven’t hit a new high in over two months. The S&P 500 and Nasdaq-100 hit new highs this week.

A few bearish patterns stand out on the small cap chart. First…

For more, please click here to view the related idea and chart analysis on TradingView.

Russell 2000 Small Cap Index, daily chart with selected patterns, courtesy of TradingView.
Advertisement
Trade in milliseconds

Explore the most actively traded options

Trade 600+ futures products on an advanced platform

Previous articleProfits Could Jump How Much This Earnings Season?
Next articleJerome Powell Stays Dovish: What It Means for Your Money
David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.