American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Russell 2000 to reach a new all-time high within 5 months: here’s why

by admin June 28, 2025
June 28, 2025
Russell 2000 to reach a new all-time high within 5 months: here’s why

The Russell 2000 index has already been in a sharp uptrend over the past three months, but Craig Johnson, the chief market technician at Piper Sandler , believes the small-cap benchmark is on the verge of a breakout that could push it up much further in the months ahead.

In a recent CNBC interview, Johnson said he expects the small-cap benchmark to reach a new all-time high by mid-October, citing a bullish technical setup and improving macro conditions.

“We see about 16% upside,” Johnson said. “The Russell 2000 is very likely to make a new high – and probably will do so before mid-October.”

Russell 2000 has formed a bullish pattern

Johnson’s optimism is rooted in a classic technical formation: the inverted head and shoulders. This pattern, often viewed as a reliable signal of a trend reversal, has been forming on the Russell 2000’s weekly chart over the past two to three years.

According to Johnson, the time it took to build the pattern aligns with the projected timeline for its breakout to play out.

The Russell 2000, which tracks 2,000 small-cap U.S. companies, has lagged behind the S&P 500 and Nasdaq in recent years. But Johnson believes that’s about to change.

“If you’re looking for opportunities that haven’t already been exploited, you’re probably not going to find that in the Magnificent Seven,” he said, referring to the mega-cap tech names. “You’re going to find that down cap.”

FOMO, fed, and fundamentals to drive Russell 2000

Beyond technicals, Johnson pointed to a confluence of macro and behavioral factors supporting small caps.

The Federal Reserve has signaled a potential shift toward rate cuts, inflation pressures are easing, and the U.S. economy has proven more resilient than many expected. These conditions tend to favor smaller companies, which are more sensitive to borrowing costs and domestic growth.

He also flagged the return of the “FOMO trade” – fear of missing out – as a key driver.

“There’s a lot of managers that didn’t get out of the way in the April downturn and didn’t re-engage in May or June,” Johnson said, adding “with market making new highs, the pain trade is squarely up.”

Johnson sees transportation space as an exception

Interestingly, Johnson remains underweight transportation stocks, despite their domestic focus. He cited weak trends and margin pressures in trucking and airlines, exacerbated by rising fuel costs.

Instead, he sees stronger prospects in sectors like industrials, healthcare, financials, and technology – areas with heavier weightings in the Russell 2000.

As the index approaches key resistance levels, traders will be watching closely for a confirmed breakout above the neckline of the inverted head and shoulders pattern. If that happens, Johnson’s forecast of a new high by October could quickly shift from a bold prediction to market reality.

The post Russell 2000 to reach a new all-time high within 5 months: here’s why appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Germany says DeepSeek illegally sends data to China, urges Apple, Google to review app
next post
Nike stock rallies 15%: 3 reasons why shoemaker’s shares are rising today

Related Posts

Opera stock price is rising: could OPRA jump...

November 21, 2024

Boop crypto surges 242% in 24 hours as...

May 2, 2025

ECB’s digital euro vs. Trump’s dollar-backed stablecoins: who...

January 25, 2025

HomeStreet Bank sells $990M in loans to BofA...

December 28, 2024

Compass stock price soared, but a risky chart...

January 16, 2025

Qantas shares hit record high on frequent flyer...

January 23, 2025

Top catalysts for Dow Jones Index and US...

June 15, 2025

MCX shares hit record high as UBS sees...

June 25, 2025

GSK shares surge around 6% as drugmaker raises...

February 5, 2025

EssilorLuxottica share price jumps on Meta’s 3% stake

July 9, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,612)
    • Investing (2,713)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved