Still looking for clues here. Let’s look at the Russell.
One thing that bugs me about the more immediately bearish alternatives here is that this big bear flag (green arrow) never really broke down properly. And it counts painfully well as 3-waves up (for orange A), 3 waves down (for orange B) and the rally yesterday and today’s drop “looks” remarkably like a little green 1-2 in there (red arrow). If that’s all correct, then we could see a strong rally from here.
I’m not sure how well to be convicted either way at this point. I was more heavily bearishly positioned coming in to today, but I have lightened some of that and taken additional longs, so that I am far more balanced and agnostic. That’s all I could think to do for the time being. At this point, I really can see it going either way. And I really don’t like the look of that potential 1-2 down there on the Russell at the moment, making me less certain that we’ll go down (though we still could).
