Small caps have surged higher in recent days as investors warm towards companies most exposed to the domestic US economy, in part thanks to rising expectations for interest rate cuts.
The Russell is also showing clean price action from a bullish point of view: breaking key levels and defending them. Once such level was around 2325 which it took out on Friday in response to a dovish Powell. That level has turned into support today after Monday's slight pullback. Though it is possible we could see a break below this level and for the index to test longer term levels, that wouldn't necessarily be the end of the bullish run. Below this level, the next support to watch is around 2280 followed by 2232.
Resistance is now seen around round handles like 2,400 and the previous high of 2468. That could be the target for the bulls from here.
By Fawad Razaqzada, market analyst with FOREX.com
The Russell is also showing clean price action from a bullish point of view: breaking key levels and defending them. Once such level was around 2325 which it took out on Friday in response to a dovish Powell. That level has turned into support today after Monday's slight pullback. Though it is possible we could see a break below this level and for the index to test longer term levels, that wouldn't necessarily be the end of the bullish run. Below this level, the next support to watch is around 2280 followed by 2232.
Resistance is now seen around round handles like 2,400 and the previous high of 2468. That could be the target for the bulls from here.
By Fawad Razaqzada, market analyst with FOREX.com
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Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.