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.
I banked a lot of beer money on IWM plays, up and down. Was surprised and puzzled at the $5 gap up this week, and it holds; very bearish Thursday and it never sold more than $1, I closed out bear spreads for a push just because it was not acting bearish and I wonder are MMs taking money out of NQ and loading into RUT? If so we might be looking at a last blowoff top in RUT before rollover. Small caps getting killed by Covid-19, no reason to buy these when >50% are losing money and so many facing bankruptcy. Reckoning will come soon IMO, after 31 July stims expire and PPP ends on 8 Aug.
siestacay
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Options on IWM have been decent plays and puts now to be considered....again. Thanks for the analysis.