Russell 2000 Technical Analysis The Fed Is Cutting Rates Into Resilient Growth

Russell 2000 Technical Analysis – FED Cuts Rates Into Resilient Growth

Contents

1. Upcoming Economic Data
2. Technical Analysis
3. Overview
4. Support and Resistance
5. Pattern Analysis
6. Moving Average Analysis
7. Momentum Indicators
8. Volume Analysis
9. Trading Conclusion

Upcoming Economic Data

The Federal Reserve has raised interest rates 425 basis points since March 2022. Many sectors have outperformed during this time and the economy continues to grow. This has prompted the Federal Reserve to slow the pace of rate hikes in the coming months.

The Russell 2000 is an index of small-cap stocks that provides broad exposure to the U.S. small-cap market. The Russell 2000 is a widely diversified index that represents approximately 10% of the U.S. equity market.

Technical Analysis

Technical analysis is the study of price action over time to identify trends and patterns. Technical analysts attempt to predict future price movements by using charts and indicators to identify potential support and resistance levels, as well as overbought and oversold conditions.

Overview

The Russell 2000 has been in a strong uptrend since the March 2020 lows. The index has made a series of higher highs and higher lows. The pullback in October 2022 was shallow and the index quickly recovered.

Support and Resistance

Support is a price level that has been tested multiple times and has held. Resistance is a price level that has been tested multiple times and has failed. The Russell 2000 has support at the 200-day moving average and resistance at the all-time high.

Pattern Analysis

The Russell 2000 has been consolidating in a range between 1,900 and 2,000. This consolidation is healthy and could precede a breakout in either direction.