Russell 2000 E-Mini Wave 5 Review

From the bottom of the Russell 2000 in February of 2016, its pattern of higher lows is clearly visible. The Russell 2000 also ignored any continued bearish moves, but also charged higher producing another new record high. This morning it has made a vertical move which, can be the start of another correction, or the end of something much bigger. 

It is pretty hard to justify this 5th wave as an impulse, even though there may be an expanded pattern involved. So far the Russell 2000 E-Mini has a record high of about 1458 at this time, it can still head higher in the short term. For this market to be on the bearish side, I want to see the Russell 2000 decline well below the 1340 price level, but ultimately the Russell 2000 has to retrace its entire 5th wave bullish phase.  Any previous low during the bullish phase, can act as a temporary support price level.  

If the potential Cycle degree wave 3 is near, then a previous 4th wave in Intermediate degree is an inadequate deep enough of a move. The previous 4th wave of one lesser degree to Cycle degree is a Primary degree correction, not an Intermediate degree correction.

To qualify as a previous 4th wave correction, the Russell 2000 has to fall to a minimum of 850 and lower in the next 3 years or so, or until solar cycle #25 starts cranking up.   

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