Russell 2000 Technical Analysis – Wait and See Mode

As for Russell 2000 technical analysis, the market is trading cautiously ahead of next week’s FOMC meeting. Bulls have done well recently by ignoring weak leading indicators such as PMI and focusing more on lagging indicators such as employment. Labor market data continues to beat expectations and there are few signs of slowing. This, together with moderate inflation levels, gave the market hope for a „soft landing” scenario, where inflation returns to its target without causing significant damage to the economy and the Fed can ease monetary policy for a happy ending. This would certainly be an unexpected and surprising result, but the economic data signals are mixed and the Fed is more likely to keep policy tight while the labor market is tight. Stay tuned for next week’s events as we not only have the FOMC policy decision, but we also get three key economic reports: the two ISM PMIs and the NFP. RUSSELL 2000 Technical Analysis Russell 2000 Technical Analysis From the daily chart above, we can see that the price is once again in resistance at the 1910-1920 zone. The market has not broken this resistance since September 2022 and the bulls need a good catalyst to successfully break through and reach the next resistance in 2030. If the market fails again and sentiment turns sour, we could see the bears take control and possibly target the bottom at 1630. Next week should be decisive for the next move. Russell 2000 Technical Analysis From the 1-hour chart above, we can see how a large lack of retail sales data sent the market lower immediately after resistance before finding the jobless claims data, which continues to show resistance. in the labor market. . Russell 2000 Eyes Key US Data Yesterday, although we got another win on economic data like Q GDP and jobless claims, the market failed to break through the resistance. This could be a sign of caution as there are many risk events next week such as FOMC, ISM PMI and NFP. Orientation to these events is probably confusing. Russell 2000 Technical Analysis Zooming in on the 15-minute chart, we see short-term price action as the market sells off immediately at the open and recovers shortly thereafter. The 1903 level should provide some support for the bulls, but the 1910-1920 resistance zone was difficult to break. If the 1903 support is broken, the bears should target the next support level at 1886 and possibly extend to 1862 when the market becomes fearful.

James Rogers

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