Category Archives: Russell 2000 Index

Update on our new Trading Group, Bottom Line Trades

By | Crude Oil Futures, NASDAQ E-Mini Futures, Russell 2000 Index, S&P 500 E-Mini Futures | No Comments

Hi everyone,

Our new venture, Bottom Line Trades, is coming along well 🙂

I wanted to share 4 trades from this week, that as of this post, are showing a profit of +$19,555.00

(CL) Crude oil trade: http://stocktwits.com/message/57548920

(TF) Mini Russell trade: http://stocktwits.com/message/57548871

(NQ) Mini NASDAQ trade: http://stocktwits.com/message/57548831

(ES) Mini S&P trade: http://stocktwits.com/message/57548818

You can see all our charts that are posted publicly here:  http://stocktwits.com/BottomLineTrades

If you’d like to achieve results like this on a consistent basis, feel free to contact us for more information:

http://www.thefibdoctor.com/contact-thefibdoctor/
or http://bottomlinetrades.com/contact/

Thx,

dave

What you can expect in our new forum

By | Russell 2000 E-Mini Futures, Russell 2000 Index, Traders Education | No Comments

UPDATE: 5/31/16

Our new Trading Group forum opens tomorrow, Wednesday, June 1st, and the 1st 3 days are free for you to watch, ask questions, get the feel of the room and chat software, etc.

Mike calls trade entries well in advance and also gives exit targets. Dave’s Fibonacci charts are always  up and live with support, resistance, targets, etc on several times frames. You’ll be seeing the /ES, /TF, /NQ, /YM, /CL, /GC, SI and AAPL.

Again, we start tomorrow, this is a team effort between Mike, Dave and anyone that truly wants to be consistently moving forward.

Dave’s website will remain here: http://www.thefibdoctor.com/ and Dave is still available for teaching.

The new combined website, Bottom Line Trades is here: http://bottomlinetrades.com/ and Mike will be available to teach his method also. Advanced members also get private Skype chat with Mike when being trained 🙂

C’mon in the room, watch what we do, and see how we hit those targets.

Thanks,

Dave & Mike

 

Update: 5/20/16

I’m adding more charts daily to our new stream. http://stocktwits.com/BottomLineTrades

If you haven’t signed up for the 3-day trial, there’s still time 🙂

Thx,

dave

 

This TF long trade was posted in progression on Stocktwits this morning. http://stocktwits.com/BottomLineTrades

Click chart to enlarge.

TF long +$1120

TF long +$1120

Thx,

dave

Is the Russell 2000 Index entering a bear market ? $RUT

By | Russell 2000 Index, Traders Education, Updated Charts | No Comments

Back in May of 2015, I wrote a piece on the Russell 2000 Index highlighting 2 support levels of 1221.44 and 1213.55. In that post, I also included a warning:

Investors will look for price to build upon its recent rally. However, it should be noted that a pullback that pushes below the identified support levels would be reason for caution.

It’s been a rough go of it for the Russell 2000 lately. The stock market is off to its worst start ever after one week, and the decline has put a Russell 2000 bear market into view.

But before we get ahead of ourselves, let’s review a chart from my post last spring.

At the time, I highlighted a consolidation range that had lasted through the month of January 2015 which had produced a long term projected price target of 1308.09.

The original chart is posted below for reference.

Russell 2000 Index – 1 year, daily chart

Russell 2000 Index

Russell 2000 Index

 

So, in the past 8 months, what has the Russell done?

Basically everything I’d expected: All price targets were hit in 2014 & 2015, with the exception of the last upside price target of 1308.09. The Russell made a high of 1296 on June 23rd, 2015. That high fell short of my price target by 0.9242%.

Now, let’s look at some charts and see where we are. We’ll start with a 20 year, weekly chart that I’ve been following for several years now. You’ll see that price declined out of the uptrend channel the week of August 17th, 2015 and could only briefly poke it’s head back inside the channel the week of September 14th, 2015.

The lower side of the uptrend channel has now become a resistance level with the last rejection coming in the week of November 30th, 2015. Price is currently down (13.27%) off that trend line. From the high of 1296 to the low that was made the week of January 4th, 2016 is a correction of (19.35%), a whisper away from what could  be the beginning of a technical bear market.

Russell 2000 Index – 20 year, weekly chart

Russell 2000 Index

Russell 2000 Index

 

Now let’s drill down to a shorter time frame and look for clues as to where price may be headed. In the 4 year, daily chart below I’ve highlighted two levels of support that need to hold, 1040.47 and 1009. If both these levels fail to hold, the RUT would be technically very damaged. The next major support level is 942.79.

Russell 2000 Index – 4 year, daily chart

Russell 2000 Index Support Levels

Russell 2000 Index Support Levels

 

And lastly, using my Fibonacci method, the 1 year, daily chart below gives us a target of 1027.34 with 2 resistance levels at 1187.31 and 1212.96. Considering this is a fairly long Fibonacci draw, you will want to draw tighter Fibonacci levels to find shorter term targets, support and resistance.

I’ll update this post as warranted.

Russell 2000 Index – 1 year, daily chart

Russell 2000 Index target = 1027.34

Russell 2000 Index target = 1027.34

 

So there’s a high likelihood that we see a technical Russell 2000 bear market. But the length of that bear market is yet to be determined. Thanks for reading and always use a stop loss!

Dave

This post originally appeared on See It Market

 

 

 

 

 

 

US Stock Market Indices Showing Strength. $DJIA, $COMPQ, $SPX, $RUT

By | Dow Jones Industrial Average, NASDAQ Composite, Russell 2000 Index, S&P 500 Index | No Comments

For the week ending October 30th, I wrote a post on the state of the 4 major US stock market indices. This post included the Dow Jones Industrial Average, NASDAQ Composite, S&P 500, and the Russell 2000, as all were at or near important resistance levels.

These levels would provide clues as to whether the bullish sentiment was still intact or if the market was becoming exhausted.

Now, 5 trading sessions later, let’s take a look at what the market told us. Here’s a rundown of the major stock market indices:

  • The DJIA added +1.39% and has closed above trend line resistance that began in 2011.
  • The NASDAQ added +1.84% and has closed 5 consecutive weekly candles above trend line resistance that began in 2012.
  • The S&P 500 added +0.95% and has closed 3 consecutive weekly candles above trend line resistance that began in 2011.
  • The Russell 2000 added +3.26% and has closed above trend line resistance that began in 2011.

That said, in the following 4 charts, you’ll see where all 4 stock market indices are entering into a tight zone where there is likely to be a tug-of-war between the bulls and bears.

Dow Jones Industrial Average – 5 Year Weekly Chart

Dow - 5 year, weekly chart

Dow – 5 year, weekly chart

 

NASDAQ Composite – 5 Year Weekly Chart

NASDAQ - 5 year, weekly chart

NASDAQ – 5 year, weekly chart

 

Standard & Poor’s 500 Index – 5 Year Weekly Chart

S&P 500 - 5 year, weekly chart

S&P 500 – 5 year, weekly chart

 

Russell 2000 Index – 5 Year Weekly Chart

Russell 2000 - 5 year, weekly chart

Russell 2000 – 5 year, weekly chart

 

In my opinion, swing and/or position traders should watch price very closely going into the Christmas buying season especially if and when they reach the current highs that can be seen on the charts (i.e. watch for breakouts). The S&P 500 and the NASDAQ are particularly close to those overhead levels now.

It’s worth noting there are 843 companies reporting earnings the week of November 9th.

Thanks for reading and remember to always use a stop.

Dave

This post originally appeared on See It Market

All major indexes at “must watch” levels. $DJIA, $COMPQ, $SPX, $RUT

By | Dow Jones Industrial Average, NASDAQ Composite, Russell 2000 Index, S&P 500 Index | One Comment

All the major U.S. stock market indices are at important levels right now. From the Dow Jones Industrial Average to the NASDAQ to the S&P 500 to the Russell 2000, the setups may vary, but the price levels are important.

In the following 4 charts of the major stock market indices, you’ll see long term trend lines that have either been cleared or price is nearing now.

Here’s a high level overview of what the charts are saying and what levels investors should be watching:

  • The Dow is pushing against it now.
  • The NASDAQ has cleared and held above the trend line for 1 month now.
  • The S&P 500 is currently sitting on the trend line.
  • The Russell 2000 is approximately 30 points under the trend line.
  • Above the trend line are highs that will need to be broken to keep the bull market intact.

Dow Jones Industrial Average – 5 year, weekly chart

DJIA - 5 year, weekly

DJIA – 5 year, weekly

 

NASDAQ Composite – 5 year, weekly chart

NASDAQ - 5 year, weekly

NASDAQ – 5 year, weekly

 

Standard & Poor’s 500 Index – 5 year, weekly chart

S&P 500 - 5 year, weekly

S&P 500 – 5 year, weekly

 

Russell 2000 Index – 5 year, weekly chart

Russell 2000 - 5 year, weekly

Russell 2000 – 5 year, weekly

 

Watch these levels closely; they will yield clues as to whether the bull market has more upside or is becoming exhausted.

Thanks for reading and always use a stop.

Dave

This post originally appeared on See It Market

 

 

Market Correction In Full Effect For US Stock Market Averages

By | Dow Jones Industrial Average, NASDAQ Composite, Russell 2000 Index, S&P 500 Index | No Comments

Greece couldn’t do it. Poor company earnings along with lower forward guidance couldn’t do it. Not even strong hints of a September rate hike by the Federal Reserve!

A technical market correction in the stock market is typically referred to as a drop of 10 percent from the highs.

It took a slow down in the world’s number two economy, China, to force this stubbornly bull market into a market correction.

Let’s take a look at the 4 major indexes to see where we are after Friday’s gouge of the Dow Jones Industrial Average (DJIA) where it gave up -530 points.

Three indexes have hit their 10% market correction level with the Standard and Poor’s 500 being shy of the mark. But all four will likely be in correction land when the markets open Monday – the futures market looks very heavy.

Notes are on the charts below.  Click charts to enlarge.

  • Dow Jones Industrial Average = (10.3%)
  • NASDAQ Composite = (10.05%)
  • Standard and Poor’s 500 Index = (7.67%)
  • Russell 2000 Index = (11.08%)

 

Dow Jones Industrial Average – 1 year, daily chart

Dow Jones Industrial Average

Dow Jones Industrial Average

 

NASDAQ Composite – 1 year, daily chart

NASDAQ Composite

NASDAQ Composite

 

Standard and Poor’s 500 Index – 1 year, daily chart

Standard and Poor's 500 Index

Standard and Poor’s 500 Index

 

Russell 2000 Index – 1 year, daily chart

Russell 2000 Index

Russell 2000 Index

 

Thanks for reading and always use a stop loss order.

Dave

This post originally appeared on See It Market

 

Is there still charge left in the raging bull ? DJIA, COMPQ, SPX and RUT

By | Dow Jones Industrial Average, NASDAQ Composite, Russell 2000 Index, S&P 500 Index | No Comments

Unless you’ve been hiding out in a cave or on a distant planet, you know the stock market has been in a bull phase since early 2009. To add perspective, the S&P has tacked on a whopping +217.87% from March 2009 to the February 2015 high ! It would be natural for one to think the bull ride may be coming to an end. But is it ? Let’s briefly touch on some past posts/charts and see what the numbers said then versus now. I’ll give you links back to previous articles for reference.

First, to get a general view of the market as a whole, refer back to this February 2015 post. In that post I highlighted the following:

  • A correction in September-October of 2014 of (9.83%). That’s close enough to (10%) for me.
  • Two pullbacks of (5.14%) and (5.38%).
  • The average of the past seven pullbacks was (4.72 %).

The shallowness of the pullbacks indicates strength to me, i.e. The bull ain’t done !

The following chart is identical to the one in the February post other than it shows the new high of 2119.59 which was put in this week. (February 23rd – 27th)

S&P 500 Corrections and Pullbacks – 10 Year Weekly Chart

S&P 500 10 year Weekly chart

S&P 500 10 year Weekly chart


 

In this December 2014 post, I posted eight charts, 2 each of the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT). In each series, I used a ten year weekly to show the breakout above the 2007 highs and a one year daily showing current resistance levels or what I deemed  “make or break” levels as volume returned and the “Santa Clause” rally began to wind down.

Since the time of that post, each indice has indeed made new highs; the Dow +0.77%, the NASDAQ +3.61%, the S&P +1.24% and the Russell 2000 +1.54%. These are gains to the current highs , not current price.


 

In my January 2015 post, I highlighted where a (10%) correction would be from the current highs. None of the indices came close to a “correction,” but the pullbacks were as follows:

  • Dow Jones Industrial Average pullback = (4.75%)
  • NASDAQ Composite pullback = (5.23%)
  • S&P 500 Index pullback = (5.03%)
  • Russell 2000 Index pullback = (5.74%)

 

Now that we find ourselves in the first trading week of March 2015, let’s see if the bull is still raging or is there a pack of bears hiding up ahead.

Starting with the Dow Jones Industrial Average (DJIA), you’ll see in the chart below two areas of major resistance; one at 17991.19 and one at 18103.45. Price has cleared both levels and they will now be support.

Dow Jones Industrial Average – 1 Year Daily chart

Dow Jones Industrial Average – 1 Year Daily chart

Dow Jones Industrial Average – 1 Year Daily chart


 

Next you’ll see the NASDAQ only has one level that I consider important in the context of this post, 4814.95.

NASDAQ Composite 1 Year Chart

NASDAQ Composite 1 Year Chart

NASDAQ Composite 1 Year Chart


 

Moving on to the broader view of the market, the S&P 500 gives us two levels of resistance that have been cleared and are now support at 2079.47 and 2093.55.

S&P 500 Index – 1 Year Daily chart

S&P 500 Index – 1 Year Daily chart

S&P 500 Index – 1 Year Daily chart


 

And lastly, the small cap index, the Russell 2000 also gives us two levels of resistance which have been cleared and are now support at 1213.55 and 1221.44.

Russell 2000 Index – 1 Year Daily Chart

Russell 2000 Index – 1 Year Daily Chart

Russell 2000 Index – 1 Year Daily Chart

It is worth noting that each indice does have open gaps from February that are below the aforementioned support levels. It is not at all unusual to see price come back to close a gap and then push back above the previous support.

Thanks for reading and always use a stop loss order.

Dave

This originally posted on See It Market

 

Russell 2000 Riding Its Bullish Channel Higher – RUT

By | Russell 2000 E-Mini Futures, Russell 2000 Index | No Comments

The markets bounced higher last week and small cap stocks were one of the beneficiaries. The Russell 2000 Index (RUT) had a big week and is back testing its highs. So it’s time to take a look at what my Fibonacci method is saying.

Since that time, the Russell, as well as the Dow, NASDAQ and the S&P 500 all reached resistance levels where they would either break out and continue to move up or pull back and do some back-filling. The latter occurred with each indice retreating 5.0 to 5.5%.  Use this article from January, 2015 for reference.

So where are we now concerning the Russell 2000 ? Let’s take a look a some charts and see. I’ll start with a 17 year, weekly overview to show that the Russell is still well within a strong uptrend channel. There’s still room both ways, but the channel is bullish, as is the current setup.

Russell 2000 (RUT) – 17 Year Weekly Chart

Russell 2000 Index, weekly chart

Russell 2000 Index, weekly chart


 

Now lets zoom in much tighter and see what Fibonacci is telling us. In the weekly chart below, you’ll see price moved up to a point that created a new weekly target of 1229.

This is also a great opportunity to see that in October, 2014 price pulled back precisely to the lower line of the up channel and then moved up an impressive +17.39%.

I’ve highlighted in yellow three previous highs that the Russell will need to clear in order to reach the target of 1229. A solid close above those levels is what you want to keep an eye on for now. If we see that, it will foretell of higher prices for small caps.

I still maintain a “13 handle” on the RUT in 2015.

Russell 2000 (RUT) 18 month, weekly chart

Russell 2000 weekly chart. Target = 1229

Russell 2000 weekly chart. Target = 1229

Thanks for reading and always use a stop loss order !

Dave

This article originally appeared on See It Market

DJIA COMPQ SPX and RUT update

By | Dow Jones Industrial Average, NASDAQ Composite, Russell 2000 Index, S&P 500 Index | No Comments

It’s been a rocky ride thus far for the major stock market indices in 2015. Just 3 weeks ago I wrote about the resistance levels for the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT). I purposely did that post at that particular time because all 4 major stock market indices were at what I deemed “make or break” levels. Simply put, they were all at resistance levels that would either push them down or they would break out above and continue upward in this raging bull market that started in early 2009.

At that time, using my Fibonacci method, these were the resistance levels I was watching (again, those levels can be seen in my post from December 31st).

  • DJIA   Res = 17991.19.       High = 18103.45
  • COMPQ Res = 4810.86.   High = 4814.95
  • SPX Res = 2079.47.            High = 2093.55
  • RUT Res = 1213.55.            High = 1220.81

Now, let’s check back in on the four major market indices and see if they broke out or pulled back at the resistance levels, starting with the Dow Jones Industrial Average (DJIA).

In the 1 year chart below, you’ll see that the Dow has not made a new high and has pulled back (4.75%). A technical correction of (10%) would be at 16293.

Dow Jones Industrial Average 1 Year, Daily chart

Dow 1 year, daily chart.

Dow 1 year, daily chart.


 

In the 1 year chart below, you’ll see the NASDAQ has not made a new high and has pulled back (5.23%). A technical correction of (10%) would be at 4333.45.

NASDAQ Composite 1 Year Chart

NASDAQ Composite 1 year chart.

NASDAQ Composite 1 year chart.


 

In the 1 year chart below, you’ll see the S&P 500 has not made a new high and has pulled back (5.03%). A technical correction of (10%) would be at 1883.99.

S&P 500 Index 1 Year, Daily chart

S&P 500 1 year, daily chart.

S&P 500 1 year, daily chart.


 

And last, but certainly not least, the Russell 2000 has made a new high of 1221.44, a minute increase of only +0.05% above the previous high.  A technical correction of (10%) would be at 1099.2.

Russell 2000 Index 1 Year, Daily Chart

Russell 2000 1 year, daily chart.

Russell 2000 1 year, daily chart.

 

If the market continues to pull back, watch for support at these (10%) correction levels as they will be high probability support numbers. And by the same token, if the market starts a march forward, the previous resistance levels will apply as well.

Thanks for reading and always use a stop !

Dave

This post originally appeared on See It Market.

 

 

 

 

 

2015.. Rare, medium or well done ? DJI, COMP, SPX, RUT

By | Dow Jones Industrial Average, NASDAQ Composite, Russell 2000 Index, S&P 500 Index, Traders Education | No Comments

Since Q1 2009 the stock market has, to say the least, been on an absolute rip higher! Will this continue into 2015? Personally, I think there’s more upside to this market, but before we take a look at charts, let’s look at some astonishing performance numbers. From the 2009 lows to the current highs, the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT) have advanced as follows:

  • DJI +179.80%
  • COMP +280.47%
  • SPX + 213.97%
  • RUT +256.34%

Yeah, that’s what I said also, WOW!

Now we’re going to walk through eight charts – a 10 year and a 1 year for each of the aforementioned stock market indices – looking for clues if this upside move will be sustained into 2015.

Dow Jones Industrial Average 10 Year, Weekly chart

Dow 10 year, weekly chart

Dow 10 year, weekly chart

 

In the 1 Year chart below, you’ll see the Dow is at a very crucial point of either breaking out or being rejected near the 2014 high.

Dow Jones Industrial Average 1 Year, Daily chart

Dow 1 Year, Daily chart

Dow 1 year, daily chart

 


Now let’s turn our attention to the NASDAQ and let the charts do the talking.

NASDAQ Composite 10 Year, Weekly chart

NASDAQ Composite 10 year, weekly chart

NASDAQ Composite 10 year, weekly chart

 

In the 1 year chart below, you’ll see the NASDAQ, like the Dow, is at a very crucial point of either breaking out or being rejected near the 2014 high.

NASDAQ Composite 1 Year Chart

NASDAQ Composite 1 year, daily chart

NASDAQ Composite 1 year, daily chart

 


Now let’s take a look at the S&P 500 Index.

Standard and Poor’s 500 Index 10 Year, Weekly chart

S&P 500 Index 10 year, weekly chart

S&P 500 Index 10 year, weekly chart

 

And once again, in the 1 year chart below, like the Dow and NASDAQ,  you can see the S&P is at a very crucial point of either breaking out or being rejected near the 2014 high.

Standard and Poor’s 500 Index 1 Year, Daily chart

S&P 500 Index 1 year, daily chart

S&P 500 Index 1 year, daily chart

 


Lastly, let’s look at the small caps index, The Russell 2000.

Russell 2000 Index 10 Year, Weekly chart

Russell 2000 Index 10 year, weekly chart

Russell 2000 Index 10 year, weekly chart

 

No surprises here either. In the 1 year chart below, you can see the Russell is at a very crucial point of either breaking out or being rejected near the 2014 high.

Russell 2000 Index 1 Year, daily chart

Russell 2000 Index 1 year, daily chart

Russell 2000 Index 1 year, daily chart

 

I wouldn’t be overly concerned with the price action of any of the above major stock market indices the rest of this week but on January 5th, 2015 keep a keen eye on these “make or break” levels as volume returns and the “Santa Clause” period winds down.

Trade safe!

This post originally appeared on See It Market