News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here:
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
  • 🇳🇱 Consumer Confidence (SEP) Actual: -5 Previous: -6
  • A rough start to the week with the cryptocurrency market a sea of red with losses on either side of -10% a common sight.Get your market update from @nickcawley1 here:
  • RT @FxWestwater: Gold, Copper Forecast: XAU Eyes FOMC, Evergrande News Sends Copper Flying Link:…
  • Heads Up:🇳🇱 Consumer Confidence (SEP) due at 04:30 GMT (15min) Previous: -6
  • PBoC liquidity injection + reports that Evergrande will make its next onshore bond payment ($35.88-million on 23 Sept) is bolstering risk appetite here. Yet, there is still no word on the $83.53-million offshore bond payment also due Thursday. Over to you now, Jpow & Co.
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • Bank of Japan: - Outlook highly uncertain amid Covid - Asset purchase outline unchanged - Cuts assessment of production - exports, production impacted by supply side constraints - BBG
  • Heads Up:🇯🇵 BoJ Interest Rate Decision due at 03:00 GMT (15min) Previous: -0.1%
Russell 2000 Extends Gains but Bullish Momentum Could Begin to Fade Soon

Russell 2000 Extends Gains but Bullish Momentum Could Begin to Fade Soon

Diego Colman, Market Analyst


  • Russell 2000 gains ground as risk appetite continues to dominate the market
  • Although the small-cap index may have gas in the tank to rise further in the coming days, a pull-back could be in the cards over the medium term.
  • Slowing economic growth and the prospect of higher corporate taxes can dent sentiment and weigh on small-caps heading into de fall

Most read: Nasdaq 100 Starts the Month with Bullish Bias & Ekes Out Record Close. Now What?

Last week, I wrote about how the Russell 2000 was approaching no man’s land near 2260, the midpoint of a trading range in which price has been trapped since February. In the days that followed, the index pierced and climbed above this area decisively, boosted by the Fed’s dovish bias at the Jackson Hole Symposium and some rotation into small-caps after their underperformance over the past several months.

After the bullish breakout, the Russell 2000 may have some gas in the tank left to rise further and retest its all-time high of 2367 in the coming days. Buying momentum, however, is likely to wane around this key technical resistance in the midst of mounting downside risks and some seasonal weakness.

One of the main threats to the domestically-oriented Russell 2000 is slowing economic growth caused by cooling household consumption in the wake of the delta-variant (e.g., the Federal Reserve Bank of Atlanta revised down its Q3 gross domestic product estimate to 3.7% from 5.3% yesterday in its GDPNow model). Although new coronavirus cases appear to have peaked, hospitalizations and deaths have not and will only start declining in late September according to most projections.

Given that hospitalizations and deaths have a more pronounced effect on consumer sentiment than new cases, confidence could continue to decline this month. Naturally, this could further weigh on consumption as people curtail leisure spending. Needless to say, this scenario poses a significant headwind to small-caps.

Last but not least, we also have a legislative risk for stocks: the prospects of higher taxes. When Congress comes back from summer recess in mid-September, Democrats will immediately begin intra-party negotiations to draft their "$3.5 trillion human infrastructure package". The bill, which could pass through reconciliation without a single Republican vote, will likely raise the corporate tax rate from 21% to 25% or, at worst, 28% to fund some of the social spending included in the legislation. As investors wake up to the possibility of damaging tax reform, market sentiment could shift to risk-off overnight and trigger a considerable pullback in Wall Street.

Focusing on technical levels, the first resistance to consider appears in the 2367 region (record high). Should price overcome this barrier, we could see a move towards 2500. On the other hand, if the Russell 2000 corrects lower, support comes in at 2260/2245, after which we have the 200-day moving average followed by channel's lower boundary near 2120.


Russell 2000 technical analysis


---Written by Diego Colman, DailyFX Market Strategist

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.