Russell 2000 Suffers Heaviest Loss As Selling Continues
Declan Fallon | Sep 07, 2022 03:44AM ET
Friday's selling continued into Tuesday, with the Russell 2000 experiencing the worst of the losses. Indices are fast running out of support with Fibonacci retracements under threat after yesterday's losses; this has become most apparent in the Nasdaq but no index is safe. The Russell 2000 is looking the most vulnerable as yesterday's bearish candlestick has the look of a continuation move.
The selling in the Russell 2000 has only just delivered a loss of stochastic midline support which adds to the pressure on bulls and means we are looking at a return to the bear market phase which has dominated throughout 2022.
What makes the market scenario more vulnerable is the drift out of Fibonacci retracement support for the Nasdaq; there wasn't a big undercut of this zone, but today has to offer some form of rally if a full retracement of the June-August move is not the most likely play for the index.
The S&P was the only index not to undercut last Thursday's bullish hammer, although yesterday's selling does not suggest that bulls are going to see gains today. As with the Russell 2000, we have a bearish technical picture with stochastics in a bit of a no-mans land.
For today, it looks like we have to favor more losses as bulls still seem to be feeling the pain from Friday's failings. The only group who can take some solace are investors who are adding on weakness; this again looks like another opportunity to put money to work if the timeframe for holding is measured in months or years.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.