Russell 2000: Wall Street attempts a rebound

The Russell 2000 could rebound but PCE inflation will be key in the short term

The duration of the rebound should however depend on the next catalysts, in particular the PCE core inflation in the United States published on Friday, then the ISM index and the NFP published next week.

Higher-than-expected inflation would strengthen expectations of a Fed rate hike, which would put pressure on bond and equity markets. Conversely, a reading below expectations could support the rebound in these markets in the short term.

If the market rebounds, the first resistance to watch will be the pivot at 1775 points, then 1830 points, which is a 50% retracement of the August-September decline.

The bullish outlook would be invalidated in the event of a pullback below the recent low at 1640 points.

Admission: Purchase at 1700 points

Stop: 1640 points

Objective: 1775, then 1830 points

Risk/reward ratio: >1

Follow the evolution of the price of the Russell 2000 index with IG.


Leave a Comment