Stocks are still somewhat unsettled, and performance has been mixed so far this week.
But in particular, I’ve been watching the developments in small cap stocks, which have now broken out into the buy zone.
The market to keep an eye on is the Russell 2000 Index futures contract (RTY).
So, let’s check in on our current analysis on this important contract and see what’s what…
Russell 2000 (RTY) in the Buy Zone
Here’s how the Russell 2000 Index (RTY) chart is showing the potential path forward for a bullish trade…
The RTY daily time frame broke the down trend line and has entered into the buy zone.
The market is now at a high price and has hit an up Fibonacci extension.
It is expected that the RTY will form a future high price followed by a bearish push towards the back side of the old down trend line to form a low price.
At this time, there are no long term/swing trading ideas without having a large amount of risk.
It will be a good idea to turn to the one hour time frame and look for shorter term ideas in the buy zone.
The Bottom Line
There are multiple ways to trade the markets… But I have been working on a special strategy for identifying great stocks that you might want to learn more about.
If you’re interested, check out the important P.S. below…
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
And if you know someone who’d love to make this a part of their daily trading routine, send them over to joshsdailydirection.com to get signed up!
Keep on trading,
P.S. I have been working with my team to find what I call “marked stocks.”
These are stocks that are potentially setting up to generate big gains… And you need to get in on them with me.
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