If I wasn't looking at other indicators as well, I could paint you a very bearish picture in stocks. I would be joining the crowd of bears that have come out of the woods and basically I would be in sympathy with the majority. That would be no fun at all and I would sound the same as all the other parrots do. Redraw and bend my parallel lines a bit and I could show you an extremely bearish wave count.
I can sure paint this RUT crash as a 3 wave zigzag, but a distorted expanded pattern could also have happened, in which case I would have 5 waves down coming to an end soon. When the bullish phase starts we will have to see if a diagonal pattern emerges or worse, another choppy pattern that just will not fit into any bullish pattern. Another 4th wave at this point is far too early, but we will watch it, if it coincides with the VIX and HDGE the next time they are extremely low.
At a minimum the RUT should pop up to the 1035 price level in the next few weeks, and more if we are at a stronger turning than what the majority expect.