In my post from earlier tonight, I outlined two possibilities that I think are the most relevant for the S&P 500 for the time being. A bullish and a bearish view. I can’t say from here which will prevail, and a similar unknown can be seen on the Russell. Let’s look at what I’m seeing on the chart here.
The move off the all-time high on $RTY looks to be a clear 3-wave move (that’s the orange “A” composed of the green A-B-C leading to it). And since then, it appears to be triangulating again (that’s the orange “B”).
Now, symmetrical triangles are agnostic, strictly speaking. That means orange “A” could be it, end of correction, and we head up from here. However, if it fails, especially given that we remain below that important (green) trend line (that comes from the May & July 2021 lows), then this could all be a much larger 3-wave decline, and the orange “C” would be something of a powerful crash.
So, I’m alerting you to this. I’m not making a call one way or another: triangles can go either way, and the S&P 500 does seem to me to have two choices ahead of it from which it may choose. But, if it chooses violence, then this is what we would be looking at on the Russell.
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