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RTY Leads as Large Cap Stocks Drop

On Tuesday afternoon, Alphabet (GOOGL) and Microsoft (MSFT) reported their latest earnings figures.

While the market was looking forward to these reports and bidding stocks higher over the past few days, the numbers weren’t as strong as analysts had hoped for.

As a result, both stocks are down by over 5% today and weighing on the large-cap indexes like the S&P 500 (ES) and Nasdaq 100 (NQ).

But the Russell 2000 (RTY), which is made up of small-cap stocks, is still on the rise and approaching our limit…

Russell Pulls Ahead

Here’s how the hourly chart is shaping up…

Hourly Chart of Russell 2000 (RTY) Futures Market — Source: TradingView

The RTY one hour time frame is in an up channel. The market hit the bottom of the channel and is now pushing bullish towards the top of the channel.

Entry: Counter trend line break bullish above the bottom of the channel.

Stop: 1,683.20

Limit: 1,823.70

As long as the market stays above the bottom of the channel, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader long / Destination Trader long or Chandelier Trader long ideas towards the one hour price target.

The Bottom Line

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Keep on trading,

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The post RTY Leads as Large Cap Stocks Drop appeared first on Josh Daily Direction.

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