Could it actually be the Russell 2000 that is most important to watch here? The RUT has found support at the 100-day SMA. This is important since the previous reference to this technical indicator led to a strong bounce to new 2019 highs in the RUT. You can see how strong of a reaction we are having today and how it failed to go below this indicator yesterday. I do believe it is essential that the major markets hold above the 200 day SMA(The SPX in particular), but I do not want others to forget the RUT. The small-cap market has been viewed as a potential leading indicator of things to come for the markets. While I do not believe it is a true leader, I have seen a strong correlation with larger market moves both up and down. Keep an eye on RUT if you haven’t already. It could give us a glimpse of what is to come.

Follow me on Twitter: @DiscipleOfTrend

 

about the author:

Charles Moon

Charles Moon is a technical "whiz kid" whose experience lies in scalp/swing trading. A patient educator, Charles excels at coaching/mentoring and can make complex concepts simple. Prior to joining the ranks of Prosper Trading Academy, Charles was a proprietary equities trader with Great Point Capital LLC. Coming from a retail trading background, his experience can help those with no experience trading to seasoned veterans.

Read Similar Articles

January 13, 2026

Credit Card Interest Rate Caps: What Traders Could Expect

A high-profile policy debate has re-entered the financial spotlight surrounding credit card interest rate caps. Last week, President Donald Trump called for a temporary national cap on credit card interest rates. He proposed a maximum annual rate of 10% over a one-year period, starting January 20, 2026. President Trump’s proposal would aim to combat the […]

Read Article
https://www.prospertrading.com/3-day-trading-patterns-for-options/3 Top Day Trading Patterns for Options
January 5, 2026

3 Top Day Trading Patterns for Options

Day trading options requires precision, discipline, and the ability to recognize high-probability setups quickly. While there are countless patterns traders attempt to capitalize on, some consistently offer better risk-reward profiles than others.  At Prosper Trading Academy, we’ve trained hundreds of traders to identify and execute these patterns with confidence. Today, we’re sharing three of the […]

Read Article
December 23, 2025

3 Top Indicators For Day Trading Options

Make no mistake…day trading options can be very profitable, but it can also be very risky. If you don’t know what you’re doing—you will get burned. When I first started day trading options, I learned that lesson the hard way quite a few times, but those experiences made me a better trader and coach. I’ll […]

Read Article

Read Similar Articles

https://www.prospertrading.com/chip-stock-rally-scotts-looking-for-this-big-move/Chip Stock Rally: Scott’s Looking For This Big Move
January 10, 2026

Chip Stock Rally: Scott’s Looking For This Big Move

There’s been a huge chip stock rally in the market that’s turning a lot of heads. Here are just a few examples: Chip stocks were among the big names that dominated at CES this year in Las Vegas. In addition to the growing demand for chips, AI, and data storage, it’s understandable why there’s so […]

Read Article
https://www.prospertrading.com/3-tech-stocks-charlie-moon-is-watching-in-2026/3 Tech Stocks Charlie Moon Is Watching In 2026
January 2, 2026

3 Tech Stocks Charlie Moon Is Watching In 2026

Traders started planning ahead for 2026 well in advance, with tech stocks being a major focus.It’s no secret that tech stocks have a huge influence on the market—in addition to the huge trading opportunities they can offer. Factors like high volume, volatility, and liquidity make tech stocks very attractive assets for traders to consider following. […]

Read Article
https://www.prospertrading.com/new-years-eve-trading-what-to-expect/New Year’s Eve Trading: What to Expect
December 31, 2025

New Year’s Eve Trading: What to Expect

With a full day of New Year’s Eve trading ahead of us, a lot of traders are wondering if any surprises might await them on the last trading day of 2025. Today will close out what has been an eventful year in the market. Trading was affected by significant events—from Liberation Day and a lengthy […]

Read Article