Russell 2000 Forecast: Potential All-Time High on the Horizon
The Russell 2000 index, comprising small-cap listed companies in the US, has been making waves in the stock market with its recent stellar performance. Since the third quarter of 2024, the Russell 2000 has been outperforming major indices like the S&P 500 and Nasdaq, setting the stage for a potential all-time high.
All-Time High Retested
On Monday, 25 November, the Russell 2000 retested its current intraday all-time high of 2,458, which was last seen three years ago on 5 November 2021. This marks a significant milestone for the index, as it is the only major US stock index that has not reached fresh all-time highs in the past three years, unlike its counterparts like the S&P 500, Nasdaq 100, and Dow Jones Industrial Average.
Trump’s Impact on Performance
The recent surge in the Russell 2000 can be partly attributed to the incoming Trump administration’s “America First” policy. With promises of corporate tax cuts and deregulation, coupled with trade tariff threats towards international markets, small-cap companies in the US have found themselves in a favorable position. The Russell 200 component stocks, which rely heavily on domestic revenue streams, have been shielded from potential headwinds faced by technology-centric companies in the S&P 500 and Nasdaq 100.
Technical Analysis Insights
From a technical standpoint, the US Russell 2000 CFD Index has been supported by upward-sloping 50-day and 200-day moving averages, indicating a strong medium-term and major uptrend. Key levels to watch include the 2,288 key support and the 2,450 key intermediate resistance, which also happens to be the current all-time high. A breakthrough above this level could pave the way for further upside towards the 2,625/655 resistance zone.
As investors keep a close eye on the Russell 2000’s performance, the index continues to present opportunities for growth and potential profit. Stay tuned for more updates on this exciting development in the stock market landscape.
