Russell 2000 Intraday Record High Reversal Update

Finally the Russell 2000 pushed to a record high and then instantly started to decline. This is the type of a pattern I like to see from a top when it shows some conviction. Any 5 wave decline, depending on where it forms, points us in the direction of a new trend. 

Soon my Cycle degree wave 3 may find a permanent home. That may sound silly to the majority, but my blog is dedicated to tracking all 5 waves in Cycle degree, because without all 5 waves in Cycle degree, tracked and confirmed,  no SC or GSC degree can exist. 

The only way that any SC degree or GSC degree can exist is when we count from a 4th wave base and not a wave 2 base. 

I use the EWP as one huge impulse where all wave 3s extend. 5th waves rarely extend except in the last degree before the top. 5th waves are always the weakest as well. I think it is next to impossible to have multi generational 5th wave extensions. 

I have to look into it in  more detail to see how far any Cycle degree 4th wave can take us. There is a huge base between 350 and 400 which would give us the third previous 4th wave of “one lesser degree”. 

As nice as the Russell 200 decline started, we have to be aware that it can still backfire at any time. With diagonals you want to look for potential surprise moves before they happen, which is easier said than done.  

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