{"id":8604,"date":"2017-03-03T15:03:06","date_gmt":"2017-03-03T15:03:06","guid":{"rendered":"http:\/\/www.t3live.com\/blog\/?p=8604"},"modified":"2017-03-03T15:03:06","modified_gmt":"2017-03-03T15:03:06","slug":"qa-is-the-russell-2000-overbought","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2017\/03\/03\/qa-is-the-russell-2000-overbought\/","title":{"rendered":"Q&A: Is the Russell 2000 Overbought?"},"content":{"rendered":"

Hi Mike,<\/em><\/p>\n

I\u2019m a subscriber and I mostly follow Scott Redler\u2019s Daily Recaps<\/a><\/strong><\/span>.<\/em><\/p>\n

I just noticed that wrote about sentiment<\/a><\/strong><\/span>. <\/em><\/p>\n

Anyway, I only trade TNA<\/strong> and TZA<\/strong> (3X Russell 2000 ETF's). <\/em><\/p>\n

Don\u2019t you think it\u2019s way overbought?<\/em><\/p>\n

-Rolando<\/em><\/p>\n

The Russell 2000<\/strong> has come 21% since its pre-election lows, so under the most basic rule of the market — what goes up must come down, eventually — it may be overbought.<\/p>\n

But let's take a look at a chart of the Russell 2000 ETF<\/strong> (IWM).<\/p>\n

\"\"<\/p>\n

The Russell is\u00a0pretty far above its 200 day moving average.<\/p>\n

However, prior to the last pop off the February lows, the Russell spent 2 months doing nothing.<\/p>\n

And now, IWM basically riding the 8 & 21 day moving averages and building a new trading range between $138 and $141.<\/p>\n

So from a big-picture perspective, the Russell may look a bit overbought — but that may not mean that it's going to drop.<\/p>\n

It could very well drop into another low-volatility range which will allow it to work off the overbought condition.<\/p>\n

I'd watch to see if IWM tests the 50 day moving average, and how it behaves from there.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Hi Mike, I\u2019m a subscriber and I mostly follow Scott Redler\u2019s Daily Recaps. I just noticed that wrote about sentiment. Anyway, I only trade TNA and TZA (3X Russell 2000 ETF’s). Don\u2019t you think it\u2019s way overbought? -Rolando The Russell 2000 has come 21% since its pre-election lows, so under the most basic rule of the market — what goes up must come down, eventually — it may be overbought. But let’s take a look at a chart of the Russell 2000 ETF (IWM). The Russell is\u00a0pretty far above its 200 day moving average. However, prior to the last pop off the February lows, the Russell spent 2 months doing nothing. And now, IWM basically riding the 8 & 21 day moving averages and building a new trading range between $138 and $141. So from a big-picture perspective, the Russell may look a bit overbought — but that may not mean that it’s going to drop. It could very well drop into another low-volatility range which will allow it to work off the overbought condition. I’d watch to see if IWM tests the 50 day moving average, and how it behaves from there.  <\/p>\n","protected":false},"author":2,"featured_media":8605,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[378,546,496],"class_list":["post-8604","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-iwm","tag-overbought","tag-russell-2000"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8604","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=8604"}],"version-history":[{"count":1,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8604\/revisions"}],"predecessor-version":[{"id":8606,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/8604\/revisions\/8606"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/8605"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=8604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=8604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=8604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}