Russell 2000 decline extends to 2%. Eye the chart
Some much for the catch-up trade.The Russell 2000 is down 2% today and at the lowest levels of the month. Rising Treasury yields and dwindling hopes for 75 bps of Fed cuts this year are behind the selling of smaller-cap US stocks.Technically, the index is being sold heavily after a head-and-shoulders pattern formed on the hourly chart.The measured target of the move is 1985, which is another 2.2% lower from here.The largest weight of the index is Supermicro and it's struggling today with a 4.8% decline on a broader pullback in high-flying AI stocks. US banks are also a major weighting in the Russell 2000 and the KRE regional banking ETF is down 2.25% to a nine-day low.Zooming out on the chart, the Russell had looked like it was breaking higher after more than a year of consolidation and several failed breaks of 2000. However now that's in question if the bulls can't shore up support. This article was written by Adam Button at www.forexlive.com.
Some much for the catch-up trade.
The Russell 2000 is down 2% today and at the lowest levels of the month. Rising Treasury yields and dwindling hopes for 75 bps of Fed cuts this year are behind the selling of smaller-cap US stocks.
Technically, the index is being sold heavily after a head-and-shoulders pattern formed on the hourly chart.
The measured target of the move is 1985, which is another 2.2% lower from here.
The largest weight of the index is Supermicro and it's struggling today with a 4.8% decline on a broader pullback in high-flying AI stocks. US banks are also a major weighting in the Russell 2000 and the KRE regional banking ETF is down 2.25% to a nine-day low.
Zooming out on the chart, the Russell had looked like it was breaking higher after more than a year of consolidation and several failed breaks of 2000. However now that's in question if the bulls can't shore up support. This article was written by Adam Button at www.forexlive.com.
