Fundamental Overview
Yesterday, we got some more
positive US data releases as the US retail sales came out a touch better than
expected and the industrial production data beat forecasts erasing the
hurricane related weakness in July.
Despite that, the market is
still pricing a 63% probability for a 50 bps cut at today’s decision. What’s
more important is that the Fed is cutting into a resilient economy which should
lead to better growth expectations and support the stock market.
Russell 2000
Technical Analysis – Daily Timeframe
Russell 2000 Daily
On the daily chart, we can
see that the Russell 2000 eventually rallied back above the major trendline and extended the gains into the
previous high around the 2250 level. The next target for the buyers should be
the 2300 level where we can expect the sellers to step in to position for a
drop back into the trendline.
Russell 2000 Technical
Analysis – 4 hour Timeframe
Russell 2000 4 hour
On the 4 hour chart, we can
see that we had a very strong rally from the lows as the market looks forward
to the Fed rate cuts and the pickup in economic activity. From a risk
management perspective, the buyers will have a better risk to reward setup
around the 2185 support
zone. The sellers, on the other hand, will want to see the price breaking lower
to pile in for a drop into the 2120 level.
Russell 2000 Technical
Analysis – 1 hour Timeframe
Russell 2000 1 hour
On the 1 hour chart, we can
see that we have upward minor trendline defining the current bullish momentum. The
buyers will likely keep on leaning on it to position for new highs, while the
sellers will want to see the price breaking lower to position for a drop into
the 2185 support. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we have the FOMC rate decision, while tomorrow we get the latest US
jobless claims figures.