Market Analysis

Russel 2000: Inside day and holding nearby a daily support

Retail sales in the US came in unchanged at 0.1% month-over-month in September, the same as in the previous month and missing analyst forecast of a 0.6% growth. Spending at restaurants and bars dropped 1.8%, the most since December of 2016.

Since the beginning of October, the Russell 2000 index lost over 9.0% and is in a well-established distribution phase since mid-October.

On yesterday session, the Russell 2000 went back and forward without any clear direction but closed in the middle of the daily range, in addition, managed to close within Friday’s range, which suggests being clearly neutral, neither side is showing control.

The daily stochastic is showing an extremely oversold market and is beginning to display a shy bullish momentum.

On the hourly time-frame, the US index seems to have established an upward trend line as a support and is creating higher highs and higher lows signs of a bullish trend. However, to push most of the bears into the cave it would need to close above the key level a 1,565.1, which has been a pivot point since early October.

UsaRus is a CFD written over Russell 2000 futures.


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UsaRus Dec ’18 H1 Candlestick Chart


Written by Hugo O’Neill, External Analyst


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