Simple Technical Analysis of the Volume Indicators on the Russell 3000 Chart

The Russell 3000 Index (Traded under the RUA symbol) comprises the 3,000 largest companies traded on the NYSE, NASDAQ and AMEX. The Russell 3000 companies represent approximately 90 percent of the total market capitalization of the US stock market. The Russell 3000 Index is set to deliver an unbiased, comprehensive and stable barometer of the broad market and is completely reconstituted annually to ensure that new and growing equities are reflected. The Russell Investments Group is the sponsor of the Russell 3000 index.

Chart 1: Russell 3000 index charts - analysis of Volume MA.

The Russell 3000 chart above show how price depends on volume. The relationship between the Index Price and the Volume Moving Average (VMA) is one of the most important factors in volume analysis. Volume always must be analyzed in combination with price. Price analysis without volume gives only half of the picture.

In the chart above, you can see the large volume surge during the first two hour of trading. The Russell 3000 index’s reaction to this bearish volume (volume during the price decline) was a strong recovery. The beginning of a decline by the VMA after hitting high levels indicates that professional investors have satisfied the selling orders of (Bearish) traders. A price advance at the same time confirms that professional investors have taken over and that there are no more sellers to push the price lower. This moment could be an excellent entry point for a "Long" position.

Below you can see how one of our exclusive institutional investors used this signal to trade some of the derivatives of the Russell 3000 index:

Table 1: Return that could be achieved by following
the volume signal on the Russell 3000 chart above

Below are some of the Russell 3000 derivatives which can be used to trade the volume signals generated by the Russell 3000 trading system.

Table 2: List of the Russell 3000 index derivatives.

By trading Russell 3000 index securities instead of stocks from this index basket, you gain stability and predictability that stocks do not have. Our volume-based technical analysis may help you to see the mood in the Russell 3000 market sector. The Russell 3000 index is far more logical and far more consistent in its actions than the individual stocks of the Russell 3000 index basket.