Could be another bounce up but I think there is a good chance new downtrend has begun. Some shorter term volatility index indicators I follow for the Russell 2000 (one and two hour RVX) have turned positive (negative for the index).
The Russell 2000 shows a compelling picture suggesting some kind of decline has started. Just don't know the intensity. Using the wave principle, from May 2014 down to the October low, we do have a clear cut ABC and that was telling us to expect a rally which indeed we got. Now that rally appears over AND stalled at the point were a potential wave B wave equals...
IWM 2 hour. Promising start of the day for you if you are bearish on IWM or EEM. Here is my updated shorter term view of IWM. IF correct the final short wave up (.05) is a series of overlapping five a-b-c waves as sometimes occurs supposedly after a long trend up. (Frost and Prechter pg 50) . A form of rising wedge. We'll see. For now I'm bearish. Take care....
The Russell 2000 boasts a whopping 89.27 P/E ratio and a dividend ratio of 1.36 percent. There actually is sometime that pays less than a US 10Y (for now). Seemingly an index that is traded off of technicals, traders could see today's rapid pullback as the beginning to a larger correction. After a double-doji top, the Russell 2000 could not expand upon all-time...
The Russell 2000 Index has reached important Fibonacci projection levels. We are expectiong a down wave (4) towards the 1060 area. Only a new weekly close above 1268 would invalidate this bearish scenario.
We were expecting a decline which we did get but today's retracement from the morning low was somewhat deep making me suspicious my expected multi-weeks decline has started. Still possible but we would have to resume declining right out of the gate tomorrow morning. I think we need a choppy move that will lead to a another small upleg before some kind of top is at...
The advance we have since early February is getting tired with the bulls showing signs of fatigue everywhere. Using the etf IWM that mimics the Russell 2k, we see many signs of exhaustion: Oscillators are diverging, volume is lessening, the wavers can count 5 up but the most powerful sign is a rising wedge ( a diagonal triangle under the Elliot Wave Principle ) a...
Quick note here on the Russell (private request I decided to share) Market closed right at 121.53 in the context of the following predictive/forecasting model results: BULLISH TARGETS: 1 - TG-Hi = 121.78 - 13 FEB 2015 and 2 - TG-Hix = 128.18 - 13 FEB 2015 PATTERN ANALYSIS: - ELLIOTT WAVE ("EW"); Wolfe Wave ("WW"): Model suggests a topped-off condition....
SANTA IS BACK!!! All indices are in BUY mode. We are aggressively looking for buy opportunities on the $NQ, $TF ($RJ), $ES. We would like a pullback to the shaded zone but looking at past rally's that may happen. Any buy triggers on shorter time frames will be bought. For the emini S&P we will be targeting the 2100 area for the first area to peel some profits.
Before FOMC, I believed IWM was poised to break thru fib ext 1.618 at 118.15. Now in two days, I now have a short term excess supply signal as IWM tested down. Circumstances changed. I have changed with them. I expect the fib 1.5x as a target 112.07. Back and fill.
For something on a longer time frame, here's one that I see playing out. The small caps have been diverging from the main indexes for some time now failing to make any new highs. In fact, it just broke through a multi-year trend line from 2010. It is looking very weak on the weekly chart with an obvious RSI divergence, I think it is letting out some air and I...