Similar to the zoomed in view on $SPY posted here, $IWM may be completing its own leading diagonal. I have been looking for a bounce, and I still expect one. Instead of getting a 3-wave move down, then a bounce, we risk, this morning, getting 5-waves then a bounce. The bounce, when it arrives will take us roughly to where the other bounce would have anyways, just a little lower. The market shouldn’t move in a straight line, barring utter catastrophe.
So, I am watching that lower green trend line zone. If we get there, we may even “underthrow” it a bit but then we may expect a rally to the orange box. We are diverging here which, barring a total plunge, should indicate that we’re close to the end of the move.
[UPDATE]: Though we have since made it to target area in price, we fell significantly lower first, so I will file this call under “Unsuccessful Calls.”