Chart of the day

Where do we stand fundamentally?

The Russell2000 is a small-cap U.S. stock market Index that makes the smallest 2000 stocks in the Russell2000 Index. It should represent the healthiest segment of the U.S. economy and it surged higher but not as SP500 and NASDAQ on the back of the rate cut hopes making a case for not warranted bullish Indices expansion.

RUSSELL2000 is testing now a strong downside resistance of 2000 and an upside support. We are seeing a bounce from it for now and a confirmation of this bounce with a break above 2070 will lead to another retest of 2150.

If it breaks above 2150 it will invalidate the third medium-term downside wave and will lead higher into extension and the fifth long-term wave. A confirmed break below 2000 and 1980 will mark the beginning of a third medium-term wave lower.

_{Look for long trade entries with a stop loss below 2030 upon a confirmed breakout above 2070 or for a short trade upon a confirmed break below 2000 with a stop loss above 2030.}