The small-cap surge continues, as Russell 2000 futures are up around 11% so far this month into fresh all-time highs at 2292.4. This continues the trend of the /RTY outperforming its peers among the major U.S. index futures, and the most-recent jump means the /RTY contract has now gained a hefty 140% since the March pandemic lows.
Examining the technicals, Russell futures completed a bullish MACD crossover on Friday, which suggests upside momentum. RSI moved into the overbought level last week, which is 70, and is making new highs relative to the most recent peaks on Jan. 20 & 25 along with price.
Keep any eye out for the RSI to fall back below overbought levels during a downward move, as this is often viewed as a bearish sign. For upside resistance, it can be difficult to assess where important price points lie during strong trends, especially when products are moving into the uncharted waters of all-time highs with no prior resistance to use as a guideline.
However, price action has now reached one standard deviation above the yearly Linear Regression Line, which some may view as an opportunity to take profits as the day opens. Downside levels to watch include the 21-day Exponential Moving Average near 2147, a large Volume Node near 2130, and the Parabolic SAR near 2090.
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