The Russel 2000 is probably exhibiting one of the clearest Elliotwave counts of all US Indices.
For one we can see a very clearly impulsive 5-wave drop from June 8th highs to June 15th lows.
Next we see a triangle in the middle of the retracement higher since which is a classic middle-of-retracement move.
Triangles are patterns prior to final ending wave...either as a Wave 4 (prior to wave 5) or as a wave B in the middle of an A-B-C 3-wave retracement.
In this case, we count a 5-wave wave A of the corrective A-B-C ---- then the 5 wave middle B triangle pattern (which I mentioned above) and since then the final wave C of the ABC shows 5 wave up.
Since we see a potential 5-wave leading diagonal and a 3 wave retracement which is potentially pointing to the beginning of the next massive wave down - similar to what happened between June 8 and 15.
The triangle pattern in the corrective pattern is what is very clear to me here and which points to the retracement since the June 15th low being a corrective pattern.
If this is indeed correct then the Bearish implications should carry over into the Dow and S&P.
Cheers!
Cyrus
For one we can see a very clearly impulsive 5-wave drop from June 8th highs to June 15th lows.
Next we see a triangle in the middle of the retracement higher since which is a classic middle-of-retracement move.
Triangles are patterns prior to final ending wave...either as a Wave 4 (prior to wave 5) or as a wave B in the middle of an A-B-C 3-wave retracement.
In this case, we count a 5-wave wave A of the corrective A-B-C ---- then the 5 wave middle B triangle pattern (which I mentioned above) and since then the final wave C of the ABC shows 5 wave up.
Since we see a potential 5-wave leading diagonal and a 3 wave retracement which is potentially pointing to the beginning of the next massive wave down - similar to what happened between June 8 and 15.
The triangle pattern in the corrective pattern is what is very clear to me here and which points to the retracement since the June 15th low being a corrective pattern.
If this is indeed correct then the Bearish implications should carry over into the Dow and S&P.
Cheers!
Cyrus
