More often than not, Russell2000 is ignored by traders. However, this index can offer us valuable clues of what's about to happen next in the economy and with major indices simply because it contains 2000 companies and these companies are medium size, reflecting best the state of the economy.
If we look at the posted chart we can see that the index has traded in a range between 2100 and 2350 with a spike in November that marks the top and the final of the uptrend.
This consolidation is proving to be distribution in fact and, considering it took a year, we can expect a major drop this year.
That being said, the index can lose 20% of its value to around 1700 zone support
Although, I don't trade Russell2000, my idea for other indices going in 2022 is very simple: sell rallies
If we look at the posted chart we can see that the index has traded in a range between 2100 and 2350 with a spike in November that marks the top and the final of the uptrend.
This consolidation is proving to be distribution in fact and, considering it took a year, we can expect a major drop this year.
That being said, the index can lose 20% of its value to around 1700 zone support
Although, I don't trade Russell2000, my idea for other indices going in 2022 is very simple: sell rallies
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🌟 Premium Contact:
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