Elliott Wave 5.0 "Reboot"

Tuesday, January 19, 2016

Russell 2000 RUT Crash Review



The Russell 2000 crash is moving right along as it seems to be leading the pack. This is also one of the only indices that seems to be displaying a good looking impulse wave. Looks are "always" deceiving, as all it takes is to start a count from the wrong wave and we can end up chasing an impulse that in reality is an expanded flat.

Right now the RUT has crossed to a new bearish low as a 3 wave crash which means that a 4th and 5th wave should still play out.  Then we still have one more set of a 4th wave in Minor degree to play out, before this impulse can be close to getting confirmed. 

I have two parallel trend lines and this impulse would have to crawl along the bottom trend line for a bit. At this time my Minor degree wave 1-2 is still too big and wave three would still have to stretch to make this impulse fit better.  In the last month or so the decline has a steeper angle to it which also suggests that this can be a zigzag. 

Some say a crisis is in the making, well, we will not know that until after it already has happened.