With a breakout from balance today following the CPI data release, the main focus for the rest of the week will be on monitoring whether these higher prices will be accepted or rejected.
Regarding your comment about RTY pulling or being pulled... About 3/4 of stocks in NQ are also in ES, and all stocks in YM are in ES. So in a very real sense, these three indices have a pulling effect on each other as they share many of the same underlying stocks, especially the mega caps in the cap weighted NQ and ES. However, since RTY contains only small cap stocks, the underlying constituents are completely different than those in ES, NQ, and YM. So, it's not really the case that RTY has a "pulling" or "being pulled" relationship with any of the others. Since small caps are very interest rate sensitive, we see more pronounced moves in RTY when rate sensitive data is the primary market driver, so it can be helpful to monitor it. However, except for total market or very broad market indices, these two classes of stocks tend to live separately and thus will not "pull on" each other in any meaningful way.
Thank you, very detailed and fantastic
Fantastic stuff!
Thank you very clear and precise order flow information and levels
Regarding your comment about RTY pulling or being pulled... About 3/4 of stocks in NQ are also in ES, and all stocks in YM are in ES. So in a very real sense, these three indices have a pulling effect on each other as they share many of the same underlying stocks, especially the mega caps in the cap weighted NQ and ES. However, since RTY contains only small cap stocks, the underlying constituents are completely different than those in ES, NQ, and YM. So, it's not really the case that RTY has a "pulling" or "being pulled" relationship with any of the others. Since small caps are very interest rate sensitive, we see more pronounced moves in RTY when rate sensitive data is the primary market driver, so it can be helpful to monitor it. However, except for total market or very broad market indices, these two classes of stocks tend to live separately and thus will not "pull on" each other in any meaningful way.