Mini Russell 2000 Intraday Record High Review

The last record high with the Russell 2000 was on July, 26, 2017. The Russell 2000 managed to top out at 1452, and since then has produced a very convincing decline. Of course the markets job is to fool as many wave analysts as it can for as long as it can, so we have to keep vigilant if some unexpected 3 wave pattern starts to develop. So far the Russell 2000 has been working like a leading indicator, along with others.

The record breaking new highs in the DJIA and SP500 have been masking the Russell 2000 decline, keeping investors in the dark about what is happening. Breaking from the pack happens on a regular basis, but sometimes we don’t know which index may lead the way. 

I wouldn’t want to see any counter rally come back much higher than the 1430 price level, so until the major peak holds, everything is still possible.

I always start any wave count with the smallest degree set from the list in the EWP book. That way we can work up the degree stack and avoid accidents like slipping into too high of a degree, too early. There is a run of Submicro degree and now we are one degree higher at Micro degree. 

Constant reviewing will force wave degree changes along the way. In the long run I’m looking for the Cycle degree wave 3 top which the majority of  long time readers knows all about. 

As I post, the Russell 2000 has not rallied as much as others have, which is a good thing. We just completed the full moon this Monday which the Russell 2000 seems to be ignoring. The next big setup will be on August, 21, 2017 when a new moon and an eclipse all happen on the same day! 

Some analysts just love to bring out the “boogie man”  or what I like to call a “Mythical Dragon”. They constantly bombard us with fear, so they can keep us brainwash. The so called GSC or SC degree “depression”, is one of these mythical dragons that has never been sighted since 1932.  😉