Russell 2000 futures have noticeably outperformed their cohorts in the other major equity indices, with the small-caps climbing about 16% this month. Although the contract has not yet pushed past its Pfizer Inc. (NYSE: PFE) vaccine announcement peak on Nov. 9, it moved above a resistance level near 1750 this week.
Taking a look at RSI, the oscillator suggests momentum may be slowing, as it just barely managed to squeeze out a new high close along with price, and crossed above and below the overbought area twice this month.
Downside price levels to monitor include: the 1750 area as old resistance becomes new support, as well as its confluence with the Linear Regression 50% Channel upper line and a volume node; and the intersection of the 21-Day Exponential Moving Average and the one Standard Deviation Channel upper line near 1685. If the /RTY keeps advancing, watch for a pause in the climb near the two Standard Deviation Channel upper line near 1865.
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