{"id":170443,"date":"2020-05-12T22:46:44","date_gmt":"2020-05-13T02:46:44","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=170443"},"modified":"2020-05-12T20:51:01","modified_gmt":"2020-05-13T00:51:01","slug":"small-cap-stocks-russell-2k-are-headed-for-a-double-dip","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/05\/small-cap-stocks-russell-2k-are-headed-for-a-double-dip\/","title":{"rendered":"Small-Cap Stocks (Russell 2k) Are Headed For A Double Dip?"},"content":{"rendered":"
May 12, 2020<\/div>
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By TheTechnicalTraders<\/u><\/a>\u00a0<\/strong><\/p>\n

– Our research team believes the Russell 2000 is leading the way in terms of technical analysis and future expectations.\u00a0 While the NASDAQ has rallied as a result of US Fed stimulus and foreign investor activity, the Russell 2000 has set up a very clear price resistance level near $131~132 that presents very real potential for a double-dip downward price trend in the near future.<\/p>\n

Monthly IWM ETF Chart<\/strong><\/h3>\n

The resistance level near $131~132 suggests the IWM may rotate downward, creating a right-shoulder, and likely attempt to move down to the $96 previous lows.\u00a0 If this resistance area can\u2019t be breached by further upside price activity, then the price will likely attempt to rotate lower and rests multiple levels as price collapses back below $100 again.\u00a0 The lack of upward price activity in the Russell 2000, and other market sectors, suggests the rally is isolated to the NASDAQ and certain other symbols \u2013 not broad-based.<\/p>\n

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Daily IWM ETF Chart<\/strong><\/h3>\n

This Daily IWM chart highlights the multiple levels of support below the current price levels.\u00a0 Each of these may act as some form of a soft floor in price as price attempts to move lower.\u00a0 Again, the lack of price to attempt to rally above the RED Resistance level on this chart suggests the Russell 2000 may have found a top and may begin to \u201crollover\u201d as momentum diminishes.<\/p>\n

If stocks are set to fall something else should start to rally. Check out my trade idea on silver<\/strong><\/a>!<\/p>\n

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Before you continue, be sure to\u00a0<\/em>opt-in to our free-market trend signals<\/em><\/strong>
\nbefore leaving this page, so you don\u2019t miss our next special report & signal!<\/em><\/p>

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Concluding Thoughts<\/h3>\n

Technical Traders watch for these types of patterns because they provide an A or B type of scenario for profits.\u00a0 Either, A, upper Resistance will be broken and the IWM will really past $140 and attempt a further upside price rally..\u00a0 or, B, this resistance level will hold price below $140 and present a very real downside price opportunity where price may attempt to fall well below $110.<\/p>\n

Our concern is that the initial downside price move in the markets, as a result of the COVID-19 virus event and global shutdown event, was followed by a Fed-induced \u201crelief rally\u201d that may be ending.\u00a0 Most of the time, these big impulse moves result in a \u201crelief recovery\u201d before further trending takes place.\u00a0 We believe the relief recovery is nearly over and the global markets may be setting up for a much bigger trending move.<\/p>\n

If you are using our free public research for your own trading decision-making and\/or using it as an opportunity to find and execute successful trades, please remember you are the one ultimately making the decisions to trade based on our interpretation and free research posts.\u00a0 We, as technical traders, will continue to post new research articles and content that we believe is relevant to the current market setups.<\/p>\n

If you want to improve your accuracy and opportunities for success, then we urge you to visit\u00a0TheTechnicalTraders.com<\/u><\/a><\/strong> to learn how you can enjoy our research and our members-only trading triggers (see the first chart in this article).\u00a0 If you are managing your retirement account or 401k, then we urge you to visit www.TheTechnicalInvestor.com<\/strong><\/a>\u00a0to learn how to protect your assets and grow your wealth using our proprietary longer-term modeling systems.\u00a0 Our goal is to help you find and create success \u2013 not to confuse you.<\/p>\n

Our researchers will generate free research on just about any topic that interests them.\u00a0 As technical traders, we follow price, predict future price moves, tops, bottoms, and trends, and attempt to highlight incredible setups that exist on the charts.\u00a0 What you do with it is up to you.\u00a0 Visit\u00a0www.TheTechnicalTraders.com\/FreeResearch\/<\/strong><\/a>\u00a0to review all of our detailed free research posts.<\/p>\n

In closing, we would like to suggest that the next 5+ years are going to be incredible opportunities for skilled traders.\u00a0 Remember, we\u2019ve already mapped out price trends 10+ years into the future that we expect based on our advanced predictive modeling tools.\u00a0 If our analysis is correct, skilled traders will be able to make a small fortune trading these trends and Metals will skyrocket.\u00a0 The only way you\u2019ll know which trades to take or not is to become a member.<\/p>\n

Chris Vermeulen
\nChief Market Strategist
\nTheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders\u00a0 – Our research team believes the Russell 2000 is leading the way in terms of technical analysis and future expectations.\u00a0 While the NASDAQ has rallied as a result of US Fed stimulus and foreign investor activity, the Russell 2000 has set up a very clear price resistance level near $131~132 that presents very […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-170443","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=170443"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170443\/revisions"}],"predecessor-version":[{"id":170446,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/170443\/revisions\/170446"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=170443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=170443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=170443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}