Russel 2000

Russel 2000 has seen a deep retracement after an impulse move. Post the up move on Friday's trading session, it is possible that Russel 2000 may have completed Wave II and Wave III can possibly unfold. In this case, the momentum will pick up once it breaks out from the upper end of the channel which is currently pegged at 2325. As Wave III unfolds, Russel 2000 can initially rise higher towards 2425 where Wave III will be equal to Wave I, and breaking above 2425 can stretch it higher to 2560 i.e. 161.8% retracement level of Wave I. Since each of the prior waves has subdivided into the five-wave rise, even the current impulse move should get subdivided into five-wave rise. 

An alternate scenario in Russel 2000 is that Wave 4 could still be in progress in which case, it might consolidate for some more time moving to the top end of the range and down to the lower line one final time in wave e before taking off. 

However, in either of the scenario, one more leg of impulse move is still pending. The only question remains whether it has already started its impulse move or it will further consolidate and see time-wise correction.