$RTY: Next Target

A little deep for a 2, but $RTY has been doing that sometimes lately (deep twos). The 78.6% retracement is the second most common level for twos and we’re there now and it coincides with the green trend line again.

I have noted the target for minute (blue) 3 above.

You can see that the structure looks like a spring, and that’s just what I believe it is, and I believe it will spring to the upside.

RTY

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$COMM Bounce Imminent and Target

$COMM is interesting to ponder. I see only three waves up from the crash lows. That could make this a four, but it looks too deep, and swift for that. It looks more like a 2. It looks like five waves down in this move so far, so it may be only halfway through, though its depth may mean that it is complete. At any rate, the diverging lows suggest that this move is finishing here. On any interpretation, we should at least see a good relief rally soon heading toward the orange box above us.

COMM

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And One More Reason We Might Be Done

I watch the equity put to call ratio with some care. As you may remember, I was skeptical of the pump last week because the correction didn’t seem done on account of the Equity PCR not hitting the spikey high we often see at capitulation lows. That post can be found here. And sure enough, here we are, that pump got faded.

However: we got the spikey high today. The ratio almost hit 1, which is fuel for the upside now. The last time we got to these lows on 9/20, we only got an .85 on the ratio. So now—finally—people are really buying puts here. And that means it’s probably actually time to buy calls instead.

PCCE