Market recapSome important macro events that went on for the week with a weekly performance report for the 4 major indices on the US stock market. If you would like anything else added to the chart comment below.
Russell2000
A major market correction expectedRussell 2000 index has been moving up in a sequence of five Elliott waves since 2009. This progress is coming to an end in a few months.
It has completed four of the five major waves on a monthly time frame (dark blue). The fifth wave that has been in progress since 2016 has already completed four of the five waves. It is currently going up in the fifth wave.
Interestingly, if you check the weekly chart below, the fifth wave is also nearing completion. It has completed four sub-waves (green) and is currently in the fifth sub-wave!
If you zoom in further and go to the daily time frame, the fifth sub-wave is currently in the second micro wave (turquoise). After the completion of the correction, this wave is going to extend to around 1800 level and then start the correction (see below).
The correction is expected to take Russell down to around 1300 levels (red waves).
Weekly chart
Daily chart
S&P HIT 50% FIB TO DOWNSIDES&P 500 has hit a huge fibonacci level to go down lower. Coincidentally the other 3 major US indexes have hit a high to low 50 as well. The Nasdaq, Dow Jones, and Russel have also hit this level. There is a good chance this continues to the downside. In order for the markets to be bullish again the indexes would need to break above the 61.8 (red line) with strong momentum. TO SEE THE OTHER FIB SETUPS ON THE INDEXES GO TO @DANTHETRADEMAN ON TWITTER. ALL FOUR INDEXES ARE DRAWN WITH THE FIB. twitter.com
RUT hits an important FIB levelRUT hits an important Fibonacci extension level. Short Fed decision spike against 2% StopLoss
Russell 2000 USA lot is going on in here and a lot needs to be taken out to reach this bearish scenario to take place, but YES! it is possible and I am going in for this with stop at 1645/50. This needs at least 2 weeks bearish trend to play out for the price to reach 1460 Area or maybe just maybe if the markets get stretched than 2nd Quarter will be my target. The graph is self explanatory so i wont go into detail but Fingers Crossed. based on last 3 months action this does look attainable.
Russell 2000 - ShortRussell 2000 is overbought with three gaps up on daily and it is time for profit taking.
*This information is to be used for educational purposes only.*
RUSSELL 2000RUSSELL 2000 Index did exactly what i mentioned in my last 2 charts. we are forming a double top, So its time to see if we are going for a breakout or a double top and shorting from there.
RUSSELL2000 US INDEXAs i had mentioned earlier in my chart, Russell 2000 has done what was expected of him. Sure it went done first to take out stops but eventually it did not take much time for him to get right back up, we still have more room to the upside left before we see some side ways trading. As its still in the range bound territory so bears will have there way once again as well.
Russell 2000 / Index USRussell 2000, shows positive signs in the continuation to the up trend. most likely staying range bound but move to the upside.
ASX, HENG SENG, IBEX, all had a good start to the week closing positive. US markets look solid to continue the rally, however any major geopolitical news can offset the rally but in the mean time Trend is UP.
Russell2000Lookiing for support at 200MA, needs to hld 1550/1560 to continue the bullish upward momentum.
Russell 2000Russell 2000, breaking all trends. Close to resistance, We can see it keep rising to new highs if the earnings report beats expectations.
positive divergence A bottom on the daily in TZA as +ve divergence is set, look for a small pull back
to gather energy to break RSI 50, if/when this happens, it comes with a strong
movement in price
The trend is your friend on IWMI'm looking to buy at the $154.50 level when we pull back. This is approximately the 50 day sma and ema on the daily time frame.
I have a limit order to buy April $155 calls at $5.15 per contract. The current mark is $7.10.
IUX Russell2000 has immediate overhead resistanceIUX Russell2000 has immediate overhead resistance but targeting ABCD move 1650 where Fib Ext 2 x collides
RUT longIdea: Possible support and return long.
DISCLAIMER:
This is where I practice ideas and work on my trading techniques. Please note I am only providing my own trading information for insight to my trading techniques, you should do your own due diligence and not take this information as a trade signal. Trade at your own risk.
Update idea
Russell 2000 Futures Show a Bearish Megaphone PatternI saw this yesterday AM went went short one future. I closed that last night at the support line. I am sorry I didn't have time to post this then but I had to leave for work.
I will try to short it again as the downward channel develops (if it does). I will be watching for more weakness in the other US equities indices. There are no COT data on Barchartdotcom.
