Russel 2000

In April I did discuss the 4th wave triangle case for some US indices but it was not my preferred count, still 2 US indices have followed up to the pattern and broken out to new highs. The Russel 2000 small stocks index is one of them. Yes small stocks that in our market are most battered. And The Russell has a P/E of 90. But this is the chart, the first quarter of 2018 is a triangle in wave 4 and we are now in wave 5. Since triangles are wave 4 patterns and precede final moves, this is the final rally for the Russel. Once wave 5 ends the next trend reversal is the final cycle top for US stocks. But we have to wait for that signal in the short term. The index is in the 6th week of advance.