Russell 2000 Daily Chart Update

 

 

The Russell 2000 has ignored much of the hype, and is still going its own path. This seems to be heading down, which could make the Russell 2000 a leading indicator index.  If we listen to those that try and give us a support price level, ask yourself, “Support for what”?  The majority of support price forecasts will never hold if we are heading into a big bear market. 

Any Cycle degree bear market can retrace by 61% and then that changes if you use the gross or the net number.  One thing is certain, if the big bear is to show its face, no puny little 20% retracement, will do the trick. At a minimum, we should see the entire start of the 2016 bull market get completely retraced. (950) Even after that price level gets hit we may need more just to get to a potential “A” wave.  This may come at the 750-700 price level, which is a net 61% retracement of the entire bull market.   

It sure is not going to happen in one day as this could take several years still to play out. 

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