Yesterday’s local count on the Russell was invalidated by this morning’s too deep of a drop. As with the other indices, I misunderstood the triangle we were in (or, in the case of the Russell, I didn’t even see it as a triangle).
But, here, like with the S&P, it fits well as the central swing of a 3-swing pullback. It may fall as low as the orange box and still look good as a “2,” but is also at equal legs now, so we will have to see if it can find support. If it does, I would expect a big rally, taking us well above the green trend line.
If the indices simply totally fall apart here, I will have to take some time to reassess many things, and I won’t have a great deal to say today. I will need to give things a lot of thought over the weekend.
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