Russell 2000 Bull Market Review:2000-2017

 

 

The Russell 2000 has also displayed some wild moves, since the first major top back in 2000.  The Russell 2000 has also formed a major base which started back in 1998. 

This gives us an extremely bearish base to work with between the 300-350 price levels.  Can it go lower? Sure, it can but that would not force me to make a degree change.  2000, 2007, 2017,  all finished with a progressively higher degree wave 3 position. 

At present we should end with another wave 3 peak, but in Cycle degree, Not a wave 5 in Cycle degree, or anything higher.  It is critical to stay in sequence, in what is supposed to come next, based on well drawn out idealized scripts. 

Without any of the Cycle degree positions, all the SC and GSC degree wave counts in the world will not mean a thing.  Just one single degree higher than Cycle degree wave 3,  is Supercycle degree wave (III), but this “ONE” degree could still take more than a decade to ever see the light of day, yet one very popular site has been in SC degree wave 3 since 2009! 

The mess of waves, starting from the 2009 bottom, is nothing but a diagonal wave structure, and if it was a big bearish rally, then from 2009-2017 would have been far more choppy and disorganized. The 2015 bear market 4th wave, must eventually terminate at a 5th wave peak, and as we can see the last little 5th wave in Intermediate degree is also a diagonal sequence. 

I follow what is the idealized sequential pattern, not what the wave patterns may look like at any given time. If I see that the herd of wave analysts all have bearish wave counts along with the majority of  market participants, then I know their wave counts will never work.  We are coming up to the end of the month in 8 days, so this could be another great time for a turning.