Russell 2000

16 Dec 2021 ‚óŹ 06:28 AM

The Russell 2000 just completed a 5 wave decline as yesterday's low and closed positive. With this, the entire structure from June to date will end up being a regular flat in which wave A is a 3 wave decline, wave B is a 3 wave advance to a new high, and wave C is a 5 wave decline. We call this a 3-3-5 pattern. This pattern is common in 4th waves and might mark the end of a wave 4 correction for the Russell 2000. At the top of the chart, you can also spot positive divergence in the RSI indicator. This once again sets up the Russell 2000 to start a new rally or a fresh impulse wave in wave 5 that should drive it back to new all-time highs.

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