S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico MarketFacts:
- US2000 is trading in the 65-point zone of the RSI indicator of the last 14 sessions
- The contract based on prices of the Russell 2000 index is trading below the 200-day EMA
Recommendation:
Short position on US2000 at the market price
- TP1: 2061
- SL: 2140
Opinion:
The rebound on Wall Street in recent weeks has lifted most indices into technical overbought zones calculated by the 14-day RSI indicator hovering near 70 points. Small-cap companies represented by the Russell 2000 index are more dependent on the level of interest rates in the economy, and the Fed has recently maintained its hawkish stance on potential cuts. We believe that, given Powell’s recent statements on monetary policy, Wednesday’s Fed meeting will also indicate a conservative stance from the Federal Reserve.
Based on the above arguments, we recommend taking a technical short position at the market price. At the same time, we recommend setting a stop loss security order to minimize the risk of potential loss.
Source: xStation 5
Methodology:
The recommendation was based on fundamental analysis of US2000, its correlation with other financial markets and technical analysis of the chart. Target levels were set using classic support and resistance levels and through Price Action analysis.
