Vanguard Russell 2000 | Huge ABC correction inbound | $VTWOA five wave primary Elliot wave cycle has ended. A primary ABC correction will now take place before another primary downtrend begins. After two bear cycles there will be consolidation and reversal. Bull trend will follow consolidation.
1.) We have a right angled broadening bottom in progress
2.) We have an Adam and Eve double bottom on 1 hour and 5 minute charts
3.) The market is at exhaustion as the price cannot go lower than the mornings dump
4.) The daily chart show that the 5 elliot wave has stopped exactly at Fibonacci extension 1.236 of the 4th wave
VTWO trade ideas
Russell 2000 - First Vehicle Going DownThe Russell 2000 tends to make faster and more drastic move compared to the larger US equity index such as S&P 500 and Dow. Based on the technical analysis, the market expects to retest the low and potentially retrace to the 0.618 fibonacci level in coming weeks.
The risk and reward ratio is showing good trade opportunity. It will be interesting to see how the market move next week.
Happy Trading.
GWK