Markets are oversold after last week and are still due for a bounce. However, the overnight action tonight seems lethargic, which may mean it is counter-trend. That may mean that we have further down to go.
On $RTY, what that could mean is that intermediate 4 (the big orange one at the bottom) is not yet in. I have been giving the bulls the benefit of the doubt and working with the assumption that it was put into place on July 19th. But, let us remain open to all possibilities.
The count would look something like this: we can still get a bounce to 2280 as I’ve been expecting, but then it could roll over and fall to the lower orange target range after which we would consolidate, make another lower low, move to blue b, etc.
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