On the daily chart below, we can see that the Russell 2000 is still stuck in the range between the 1723 support and the 50% Fibonacci retracement level as resistance. Last week, the positive headlines about a debt ceiling deal gave the Russell 2000 a boost going into the weekend as the market expected a possible deal over the weekend.

Sure enough, Biden and McCarthy announced a deal and the 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 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 Read this Term market this morning opened with a positive gap that was soon after closed during the overnight trading. This may turn into a “sell the fact” type of trade, so the technical levels will help with identifying that.

Russell 2000 Technical Analysis

On the 4 hour chart below, we can see that the big selloff from the 50% Fibonacci resistance stalled near the 1740 swing low support and bounced as positive news on the debt ceiling deal lifted up the risk sentiment. On one hand, if this is a “sell the fact” trade, we should see the whole rally getting faded and the Russell 2000 falling back into the 1723 support. On the other hand, if this isn’t the case, then the price may start to rise again and reach the 50% Fibonacci resistance at 1820.

On the 1 hour chart below, we can see that the last Friday we got the breakout of the trendline and the resistance zone at 1760 that eventually ended up in a strong rally for the Russell 2000. Now, the buyers should be waiting at the 1775 resistance turned support where they will also find confluence with the 38.2% Fibonacci retracement level and the red 21 period moving average. The sellers, on the other hand, will want to see the price to break below that 1775 support zone to position for a fall into the 1760 level and, upon an eventual breakout, target the 1723 low.