Russell 2000 futures (RTY) have reached a new all-time high, indicating the overall trend continues to be upward. The movement began from the April 2025 low and is advancing as an impulse wave. Wave ((4)) concluded at 2300.6, from where wave ((5)) initiated with an impulsive structure.<\/p>\n
Following wave ((4)), the index rose in wave ((i)) to 2396.4 before a brief pullback in wave ((ii)) to 2370.3. It then surged in wave ((iii)) to 2545.8 and a short consolidation in wave ((iv)) occurred at 2516.6. The index reached 2625 in wave ((v)), completing wave 1 at a higher level. Currently, a corrective wave 2 is underway, tracing back the cycle from the November 21 low in a zigzag formation.<\/p>\n
From the peak of wave 1, wave ((a)) decreased to 2526.2, then wave ((b)) recovered to 2590.3. Wave ((c)) is expected to extend lower towards 2397\u20132471, aligning with the 100%\u2013161.8% Fibonacci extension of wave ((a)). This area should provide support, allowing wave 2 to complete. Provided the pivot at 2300.6 holds, further buying opportunities might present in the next 3, 7, or 11 swings, allowing the uptrend to continue.<\/p>\n
The Russell 2000 (RTY) has confirmed a strong bullish trend by breaking to a new all-time high at 2625. We are now in a corrective pullback, which appears to be a standard Wave 2 retracement. This is viewed as a temporary pause and a potential buying opportunity, not the start of a new downtrend.<\/p>\n
Our strategy for the coming weeks is to look for this correction to find support in the 2397\u20132471 price zone. This area represents a key Fibonacci extension target for the current A-B-C pullback structure. As long as the price remains above the critical pivot of 2300.6, we should anticipate buyers to step in.<\/p>\n
This bullish outlook is supported by recent economic data showing Q4 2025 GDP growth surprising to the upside at an annualized 2.9%, coupled with moderating inflation figures. The Federal Reserve\u2019s pause on rate hikes throughout the latter half of 2025 has also created a favorable environment for smaller, domestic-focused companies. These conditions reinforce the fundamental strength behind the index’s uptrend.<\/p>\n
Historically, small-cap stocks have often experienced a “January Effect,” where they tend to outperform their large-cap peers at the beginning of the new year. For instance, in the years following the 2020 and 2009 market bottoms, January saw strong inflows into small-cap names as investor risk appetite returned. This historical tendency suggests the current dip could be a setup for a rally in early 2026.<\/p>\n
For derivative traders, this means we should prepare to establish bullish positions as RTY enters our target support zone. Selling out-of-the-money put credit spreads below 2397 could be an effective way to collect premium while defining risk above the 2300 pivot. Alternatively, one could watch for the pullback to show signs of bottoming before buying call options or futures contracts in anticipation of the next major leg higher.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Russell 2000 hits new high; corrective wave 2 underway, support expected near 2397\u20132471 for next advance.<\/p>\n","protected":false},"author":62,"featured_media":16991,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37988","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=37988"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37988\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16991"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=37988"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=37988"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=37988"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}