RTY (Russell 2000 futures) had a bear breakout down, but then an immediate reversal price action on the 4 hour timeframe, bringing the Russell back into the upward channel (redish channel) shown in the video.
Due to the failed breakout, most bears thought they were in a breakout down. But this is a “fakie” or fakeout for them, as they saw price reverse on them, which expedites their need to cover the short, creating quicker pressure for price to rise.
But bulls needs a continuation to verify that busted failed bearish breakout as being the start of a bigger move up. That will should be verified with the close of this week’s candle, which happens today (04 Nov, 2022).
Russell 2000 technical analysis video:
Earning movers and market sentiment:
- The S&P 500 has 61% of its stocks in a bear market, up from 62% a week ago
- Yesterday’s Nasdaq 100 Movers: 42 Rising, 59 Falling
- Yesterday’s S&P 500 Movers: 269 Increasing, 232 Declining
- Despite Strong Earnings Results, PYPL Stock Drops -9.2% in Extended Hours. However, SQ shares are up +13.6% after the release of the latest earnings report.
- TEAM shares are down -21.6% after earnings, the worst drop in over six years.
- NET Stock Drops -14.2% Following Earnings Report
- CVNA shares are down -10.5% after earnings, the worst drop in over two years.
- TWLO price fell -17.2% after earnings, the lowest in almost a year.
- SBUX Price Increases +2.2% in Extended Hours Following Q4 Earnings Beat
- WBD Price Drops -4.2% in Extended Hours Due to Missed Q3 Earnings
- Despite poor earnings results, the price of DASH rises by 9.6% in extended hours.
- In crypto: Despite missing Q3 EPS estimates, COIN stock rose +4.2% after hours.
- JPM is hosting a company event tomorrow.
- Tomorrow is the ex-dividend date for INTC.
- AAPL will go ex-dividend tomorrow.
- META Price is on a downtrend for the seventh consecutive day; it has reached a new five-year low.
- Bullish Sentiment in the SPY from Option Trades
- GOOG shares are trading at their lowest level since last year. GOOG Option Trades Show Bearish Sentiment
- Option Trades Show Bearish Sentiment for TSLA
- Option Trades Show Bearish Sentiment for AAPL
- AMZN Option Trades Show Bullish Sentiment
Trade Russell 2000, any futures
Futures
Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as they involve specified and non-flexible parameters.Futures Trading ExplainedFutures contracts are negotiated at exchanges that act as a unified marketplace for both buyers and sellers. Buyers of contracts represent long position holders, while selling parties constitute short position holders.Both parties risk their counterparty walking away if the price goes against them. As such, the contract can involve both parties incurring a margin of the value of the contract with a mutually trusted third party.This margin can range substantially, depending on the current volatility of the market of the security being traded.Futures can be incredibly risky and are the textbook definition of market speculation. A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price.If this prediction is correct, the trader will profit. If the prediction is incorrect there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding.For this reason, retail traders will seldom be afforded access to futures trading by brokers without first undergoing specific questions or account requirements.
Futures or a futures contract represents a legal agreement to buy or sell a security or asset at a predetermined price at a specified time in the future. Of note, the parties are not known to each other.These transactions usually involve commodities or other securities involving the buying and selling for a forward or predetermined price.Futures also adhere to a delivery date, which specifies the date of delivery and payment. Relative to other forms of investing futures are much more complex, as they involve specified and non-flexible parameters.Futures Trading ExplainedFutures contracts are negotiated at exchanges that act as a unified marketplace for both buyers and sellers. Buyers of contracts represent long position holders, while selling parties constitute short position holders.Both parties risk their counterparty walking away if the price goes against them. As such, the contract can involve both parties incurring a margin of the value of the contract with a mutually trusted third party.This margin can range substantially, depending on the current volatility of the market of the security being traded.Futures can be incredibly risky and are the textbook definition of market speculation. A trader who predicts that the price of an asset will move in a certain direction can contract to buy or sell it in the future at a price.If this prediction is correct, the trader will profit. If the prediction is incorrect there will be losses. Futures trading is considered an advanced type of trading that requires prior knowledge and understanding.For this reason, retail traders will seldom be afforded access to futures trading by brokers without first undergoing specific questions or account requirements.
Read this Term market and the stock market at your own risk.
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