Russell 2000 (RTY) Outperforms All equity indices, Makes Big Move Relative to Two Week Trend; Heads Up For the 2nd Day In A Row

The Hourly View for RTY

Last Updated January 7, 2021, 03:020 GMT

At the moment, E-Mini Russell 2000’s price is down 0 (0%) from the hour prior. This move is a reversal from the hour prior, which saw price move up. If you’re a trend trader, consider that the strongest clear trend on the hourly chart 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 an uptrend on the 20 and 10 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 came into today up 3.98% (78.81) from the open of the previous day, marking the 2nd day in a row an increase has occurred. Russell 2000 outperformed all 14 assets in the equity indices asset class since the previous day. Let’s take a look at the daily price chart of Russell 2000.

RTY

Russell 2000 Technical Analysis

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. The clearest trend exists on the 90 day timeframe, which shows price moving up over that time. For another vantage point, consider that Russell 2000’s price has gone up 5 of the previous 10 trading days.