Elliott Wave Analysis: Russell-Small Caps May Face More Weakness

CME_MINI:RTY1!   E-Mini Russell 2000 Index Futures
Hello traders and investors!

Today we will talk about small caps - Russell 2000 Index in which we see nice and clean bearish setup, which means that Russell may face even more weakness in current risk-off sentiment.

From Elliott wave perspective Russell can be trading in bigger, higher degree A-B-C corrective decline, where wave C is still missing. We can see five waves of decline into first leg A, followed by a three-wave corrective rally in wave B, so wave C can be now in play.

From technical point of view, Russell made an impulsive drop from the highs and retraced perfectly back to the former wave 4 resistance area, from where we can already see sharp sell-off that can take us much lower, especially if breaks channel support line.

Well, seems like bears are still in control and we should expect more downside pressure in upcoming days/weeks, maybe even down to 1500 area, but firstly we want to see broken 1900 bearish confirmation level.

Trade well!
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