A little deep for a 2, but $RTY has been doing that sometimes lately (deep twos). The 78.6% retracement is the second most common level for twos and we’re there now and it coincides with the green trend line again.
I have noted the target for minute (blue) 3 above.
You can see that the structure looks like a spring, and that’s just what I believe it is, and I believe it will spring to the upside.
The Nikkei ($NI225) has entered the expected range for wave two of intermediate degree. The move down is so far composed of 3 waves so may finish anytime that it would like to. A plunge significantly deeper than the orange box would begin to cast doubt on this interpretation, but I believe we should expect continued upside once the correction has completed.
After making a five wave advance off the crash lows, $HSBC has entered a summer’s-long correction that has taken it into the range expected for a two of primary degree. The reaction to the multi-year trend line was to be expected. It has fallen in three waves, so it may already be complete. It has the right “look” in terms of both time and price. I have noted the target for primary 3 in the orange box above us.
I will update it with shorter-term targets once the first wave of at least minor degree has completed.
$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.
