Small Caps Could Be SputteringUS Small Cap 2000 IndexTVC:RUTTradeStationThe Russell 2000 has outperformed most of this year, but some traders may see downside risk. The first pattern on today’s chart is the mid-August high of 3070. It was less than 2 percent above the previous high on July 1. The small-cap index failed to hold that level and ended last week under 3,000. Are we looking at a false breakout? Second, MACD has made steadily lower highs for months. That could be viewed as bearish divergence. Third, RUT advanced between July 31 and August 14. It tried to hold a 50 percent retracement of that move but violated that threshold on Friday. Prices also crossed below the 50-day simple moving average. Those signals may reflect intermediate-term weakness. Next, the 8-day exponential moving average (EMA) crossed below the 21-day EMA. MACD is also falling. Those signals may suggest the short-term trend is weakening as well. Finally, Federal Reserve Chairman Kevin Warsh leaned hawkish in his Jackson Hole speech on Friday. Tighter monetary conditions could present a headwind for small caps. TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. Learn more here about TradingView’s Broker of the Year! Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors. Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges. TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.