Russell 2000: Towards a continuation of the short-term decline?

Upcoming inflation and employment figures will be crucial for the Russell 2000

Now that the US election is over, the main catalyst for the Russell 2000 should be economic publications, particularly those on inflation and employment.

The Russell 2000 has often reacted particularly volatile to these publications, particularly in July when CPI inflation came in below expectations at 2.9% after 3.0% and 3.3% in previous months.

For this end of the year, the main catalysts for the Russell 2000 should therefore be PCE inflation for the month of October published at the end of the month, the monthly employment report for November published at the beginning of December, then CPI inflation and the Fed’s monetary policy decision in mid-December.

Data in favor of soft-landing and a faster pivot by the Fed would be positive for the Russell 2000 and vice versa.

Input: Short at 2310 points

Objective: 2200 points

Stop : 2360 points

Risk/Return Ratio: >2

Follow the evolution of the US Russ 2000 price with IG.