Russell 2000 - IWM - Inverse PotentialTech earnings are here with the market at all time high. Watching this week to see if small caps join the melt-up.
MMMicro E-mini Russell 2000 Index Futures
2,125.0USDD
+23.5+1.12%
At close at 20:59 GMT
USD
No trades
M2K1! trade ideas
Wyckoff Distribution in RTYNot absolutely perfect representation of Wycoff. You can see some penetrations in areas where we are told price does not enter. However, overall the structure is accurate and aligns with a high level definition of Wycoff distribution. Wait for the price to break the lowest support and come back in to initiate short.
Caveat emptor.
SMALL CAPS CORRECTION OR HUGE BREAKOUT?The perfect storm event known as the Covid pandemic has introduced many millions of new traders into the circus. The indices have performed amazingly well over the last year.. nearly parabolically so. While I do not believe the indices have formed a major top yet, a minor pivot is likely. I have been hoping for a decent correction to shake things up. I am not certain if we'll even get that. I'm looking at this pattern on the Russell 2000 (RUT, IWM, RTY1!) that is either an ascending wedge or a bull flag. Watch price action closely in this range. If it breaks below, it will likely do it very quickly and flush a lot of these new traders out. On the flip, if it breaks above... well, prepare for another move that defies gravity.
What do you think will happen? I'd prefer a flash crash type of event. Personally, I believe having an equal long/short (hedge) is not unwise aka strangle.. Let's see what happens!
+4,707 Tick Bullish Push RTYThe RTY daily time frame is in an up trend. The
market is making higher highs and higher lows. The
market is at a low price in the buy zone hitting the
uptrend line. The market has an up Fibonacci with
an extension above the live market price point
2588.1 about +4,707 Ticks away. It will be a good
idea to turn to the one hour time frame and to
look for low prices in the buy zone.
Buy the dip at ~2145 If you think it continues the trend, then buy the dip at ~2145
Every other index is right near ATH, Russel has been stalling since March. Russel should have room to catch up. The issue with Russel is meme stocks, and speculative assets are getting crushed right now. Where as other indexes like the Nasdaq composite has strong assets to carry the thousands of others.
RUSSEL 2000 - Bullish formationI´m bullish for the small caps:) The market reached a logical target in the corrective movement. Now i´m looking forward to a bullish impulse to the upside. The scenario remains intact for the time being as long as the market stays above 2214.3. Below that level would be a bearish invalidation. As long as the market remains within this sideways range, everything is fine. Wave 2 would have even more room to correct. So my thesis is that the small caps are starting a small rally once again. That would also correlate with my general assessment of the market.
RUSSEL 2000 - Bullish summer rally for the small caps? I´m bullish for the small caps:) The market reached a logical target in the corrective movement. Now i´m looking forward to a bullish impulse to the upside. The scenario remains intact for the time being as long as the market stays above 2214.3. Below that level would be a bearish invalidation. As long as the market remains within this sideways range, everything is fine. Wave 2 would have even more room to correct. So my thesis is that the small caps are starting a small rally once again. That would also correlate with my general assessment of the market.
RTY Daily Bullish Push +1,000 TicksThe RTY daily time frame is in an up channel. The
market is moving from the top of the channel
towards the bottom of the channel. The market
created a down Fibonacci with an extension price
point 2180.3 which matches with the bottom of
the channel. It will be a good idea to wait for the
market to fall towards the bottom of the channel.
Then turn to the one hour and look for low prices
in the buy zone back towards the top of the
channel price point 2363.7
US Major Index Update (7-8-21)On June 24th I provided targets for Long trade and recommended Shorting at upper target level. The NAZ is playing perfectly and the fact that the upper long term TL has rejected the NAZ, may be a concern. The other 3 have shown much less strength. This is where we need to watch how serious/strong the "Buy the Dip" strategists behave. White arrow was original projection and Yellow is current target or projections. Failure of hitting yellow target, reverse trade and go Long. Yellow target hit, Go Long.
Fresh Faces from Reconstitution Headed into High GrowthTransformational change in our infrastructure is coming. Energy storage, transfer, and usage will drive this trend. The Russell is primed to make its next push up to the 2.618 extension around 3,000. Looks like September is going to be the ramp up. I hold several names added in the reconstitution.
RTY UpdateThis is the only index that surprised me a bit. I expected small caps to rally with the rest of the market. Looks to me like it wants to go oversold again.
I probably would have traded this week had I known, but whatever. I predicted the ES and NQ meltup correctly, just thought small caps would go with...
Elliott Wave View: Russell (RTY) Looking for Further UpsideShort term Elliott Wave suggests the rally from March 25, 2021 low is unfolding as a leading diagonal. Up from March 25 low, wave 1 ended at 2298.3 and pullback in wave 2 ended at 2112.6. Index then resumes higher in wave 3 towards 2350.30 and pullback in wave 4 ended at 2206.20. Wave 5 is currently in progress with internal subdivision as a 5 waves impulse in lesser degree. Up from wave 4, wave (i) ended at 2287.30 and dips in wave (ii) ended at 2258.80.
Index resumed higher in wave (iii) towards 2342.80 and pullback in wave (iv) ended at 2330.30. Final leg higher wave (v) ended at 2346.70 and this completed wave ((i)) in higher degree. Wave ((ii)) pullback ended at 2284.70 with internal as a double three Elliott Wave structure. Down from wave ((i)), wave (w) ended at 2299.40 and rally in wave (x) ended at 2328.80. Index then extended pullback in wave (y) towards 2284.70. This completed wave ((ii)). Expect the Index to extend higher while above 2284.70, and more importantly above 2207.16. As far as June 21 pivot low at 2207.16 stays intact, expect dips to find support in 3, 7, or 11 swing for further upside.
