Always consider hidden risks
Russell 2000 (TWOK ETF): A Runaway Train?
​June 7 2016 ( From TradingView )
If you would like to receive our free daily markets updates, please Sign-Up

​The Situation

The Russel 2000 Index (TWOK ETF) is trading like a Runaway Train ​to say the least.

​​Here is some Technical Observations:​​​
​1) TWOK ETF is now at 24.8% from its bottom reached on February 11 2016
​and SP500 (SPY ETF) is at only 16.7%​​​​.

​​2) TWOK ETF from highest peak price (reached on June 23 2015) to the
​price yet (reached on ​February 11 2016) was 27.2% and only 15.2% for ​the Mighty SP500 (SPY ETF). ​​​​

​​​So the TWOK ETF outperformed tremendously lately the Mighty SP500 Index (SP ETF) on a relative basis (ratio of TWOK over SPY). Interesting to note that this ratio reached the bottom of this cycle on February 9 2016 and now near at the resistance trendline that started back since June 2015. ​(See first chart below - Blue Trendline - Ellipse).

But the real interesting part is that it is the first time that we close on a relative basis above the 200 DMA (Day Moving Average), last time was on September 21 2015! and Bulls need to protect that zone from now on...
(See first chart below - Green Line - Ellipse).

TWOK ETF is still trading within a tiny Uptrend Channel since May 19 2016. 
 (See second chart below - Channel).


Russell 2000 (TWOK ETF): A Runaway Train?  $SPY, $IWM  #Trading #russell2000 #SP500
TWOK ETF vs SPY ETF ( Candles )
​​20 DMA ( Yellow Line )
​50 DMA ( Red Line )​
200 DMA ( Green Line )​

Daily Candles​ - Right Scale
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )
200 DMA ( Green Line )