1 Mark Putrino, CMT www.bullsheadtrading.com [email protected]BHT identifies meaningful trends and important supply and demand levels in the financial markets. An understanding of these dynamics will add Alpha to any investment strategy. The following are important factors to consider in the Small & Microcap Equity Sectors: Russell 2000 - After making all-time highs last month, the IWMs continue to trade sideways. In the short-term, $135 has been support but it may be deteriorating. Longer- term, there may be support around the $129-130 level because this was the top and an all-time high in June of 2015. Russell 2000 Value - The move that the IWNs made in the month after the election is one of the largest gains ever made in that timeframe. Short-term, they are trading sideways. Longer-term, the $105 level may be an important support level because it was important resistance three times over the past four years. Russell 2000 Growth – The IWOs are consolidating. Unlike the other two indices, they did not make a new all-time high in the recent rally. There is resistance around the $160 level because this was the peak and an all-time high in June of 2015. On the downside, there will probably be support around $150 because it was resistance in August, September, and October. Russell Microcap – The IWCs rallied off of and continue to test support around the $84.50 level after breaking their short-term downtrend. This level is important support because it was the peak and an all-time high in June of 2015. Longer-term, a break of this level could lead to a meaningful move lower. S&P Smallcap 600 – The IJRs have broken their short-term downtrend and are consolidating. Longer-term, there will probably be support around the $63 level because it was the top of the range from August through early October. S&P Smallcap 600 Growth - The IJTs continue to consolidate around the $150 level. Longer-term, if they go lower there will probably be support around $140 because it was the top in August & September. S&P Smallcap 600 Value - The IJSs have broken their short-term downtrend and are consolidating. Longer-term, if they go lower there may be support around the $125 level because it was resistance from early July through early October. Russell 2000 Consumer Staples – This sector broke support around the 2,520 level and continues to trend lower. There was support around 2,520 because it was resistance in September, October, and November. Russell 2000 Utilities – This sector is has broken the uptrend that began in early November and is now consolidating after hitting resistance around the 1,745 level. This level was resistance in July so it isn’t a surprise that it is resistance now as well . Smallcap Equity Momentum – The Russell 2000 Relative Strength Equity Momentum Indicator is neutral. Small and Microcap Equity Sector Levels & Trends Preview Analysis of Supply & Demand Dynamics in the Financial Markets January 30 th , 2017
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Small & Microcap Equity Sector Preview - January 30th, 2017
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BHT identifies meaningful trends and important supply and demand levels in the financial markets. An understanding of these dynamics will add
Alpha to any investment strategy. The following are important factors to consider in the Small & Microcap Equity Sectors:
Russell 2000 - After making all-time highs last month, the IWMs continue to trade sideways. In the short-term, $135 has been support but it may be deteriorating. Longer-
term, there may be support around the $129-130 level because this was the top and an all-time high in June of 2015.
Russell 2000 Value - The move that the IWNs made in the month after the election is one of the largest gains ever made in that timeframe. Short-term, they are trading
sideways. Longer-term, the $105 level may be an important support level because it was important resistance three times over the past four years.
Russell 2000 Growth – The IWOs are consolidating. Unlike the other two indices, they did not make a new all-time high in the recent rally. There is resistance around the
$160 level because this was the peak and an all-time high in June of 2015. On the downside, there will probably be support around $150 because it was resistance in August,
September, and October.
Russell Microcap – The IWCs rallied off of and continue to test support around the $84.50 level after breaking their short-term downtrend. This level is important support
because it was the peak and an all-time high in June of 2015. Longer-term, a break of this level could lead to a meaningful move lower.
S&P Smallcap 600 – The IJRs have broken their short-term downtrend and are consolidating. Longer-term, there will probably be support around the $63 level because it was
the top of the range from August through early October.
S&P Smallcap 600 Growth - The IJTs continue to consolidate around the $150 level. Longer-term, if they go lower there will probably be support around $140 because it
was the top in August & September.
S&P Smallcap 600 Value - The IJSs have broken their short-term downtrend and are consolidating. Longer-term, if they go lower there may be support around the $125 level
because it was resistance from early July through early October.
Russell 2000 Consumer Staples – This sector broke support around the 2,520 level and continues to trend lower. There was support around 2,520 because it was resistance in
September, October, and November.
Russell 2000 Utilities – This sector is has broken the uptrend that began in early November and is now consolidating after hitting resistance around the 1,745 level. This level
was resistance in July so it isn’t a surprise that it is resistance now as well.
Smallcap Equity Momentum – The Russell 2000 Relative Strength Equity Momentum Indicator is neutral.
Small and Microcap Equity Sector Levels & Trends Preview
Analysis of Supply & Demand Dynamics in the Financial Markets