Russell 2000 (RTY) Makes Big Move Relative to Two Week Trend, Heads Down For the 2nd Straight Day; Breaks Below 20 Day Average

The Hourly View for RTY

Last Updated January 5, 2021, 02:020 GMT

At the time of this writing, E-Mini Russell 2000’s price is down 0 (0%) from the hour prior. It’s been a feast for bears operating on an hourly timeframe, as E-Mini Russell 2000 has now gone down 8 of the past 10 hours. Regarding the trend, note that the strongest trend exists on the 20 hour timeframe. Price action traders may also wish to note that we see a pin bar candlestick pattern on E-Mini Russell 2000. Given that we see downtrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

Russell 2000 Daily Price Recap

Russell 2000 closed yesterday down 1.47% (28.94); this denotes the 2nd straight day a decrease has occurred. Out of the 14 instruments in the equity indices asset class, Russell 2000 ended up ranking 12th for the day in terms of price change relative to yesterday. Below is a daily price chart of Russell 2000.

RTY

Russell 2000 Technical Analysis

Moving average crossovers are always interesting, so let’s start there: Russell 2000 crossed below its 20 day moving average yesterday. Volatility for Russell 2000 has been contracting over the past two weeks relative to volatility over the past month. Whether volatility reverts will be something to watch. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up. For additional context, note that price has gone up 7 out of the past 14 days.