Russell Cash wave count

[Larry22]

We have now reached a DP on the Russell cash index and closed higher today with a blue bar.

From my wave count and the DP area we have strong probabilities of going up, if my double ABC count is right we will have to go up for a B wave then make another new low again for the last C leg. I still have an alternate count with a 5 wave decline in the last C wave, meaning the correction could be over, anyhow we seems to have reached a nice low risk entry.

We could have the answer tomorrow if go go higher then yesterday's high.

Time will tell.


Laurent

[Larry22]

After a few analysis I came up with a possible daily wave count on the Russell.

On the attached charts you can see that we might be at a potential reversal area, we could be at the end of the fifth wave of a big C wave and at a 1,618 projection from the A wave.

We can also see that we have made an extension ( 5 waves )in the fifth.

Of course the market can continue to decline but it will be interesting to see how the market is gonna react at this level and with this possible wave count.


Laurent

That was last week's post.

[Larry22]

That's today.

Well it wasn't a bad call afterall, very close. :D

[Larry22]

Based on that wave count and on my wave count analysis on the 1 min chart I was able to buy near the LOD at 12:48.

If anyone whants to know why, ther answer is very easy we were at a 78,6 % retracement from the low made at around 8:40 it was the low of wave 2b for a possible wave 3c.

[tar001]

I guess you always have to keep the LARGE picture in mind! all I got with MTP today were sell setups and I got stopped out a few zillion times(gotta take the good with the bad) today SUCKED
hahaahh
:D


Based on that wave count and on my wave count analysis on the 1 min chart I was able to buy near the LOD at 12:48.

If anyone whants to know why, ther answer is very easy we were at a 78,6 % retracement from the low made at around 8:40 it was the low of wave 2b for a possible wave 3c.

[tar001]

By LARGE I mean even more than a 15 minute because on a 15 minute chart I could not find any DP's or support anywhere and I was looking because as strange as it sounds I feel more comfortable being long. Probably comes from years of buying stocks.


I guess you always have to keep the LARGE picture in mind! all I got with MTP today were sell setups and I got stopped out a few zillion times(gotta take the good with the bad) today SUCKED
hahaahh
:D

[Larry22]

By LARGE I mean even more than a 15 minute because on a 15 minute chart I could not find any DP's or support anywhere and I was looking because as strange as it sounds I feel more comfortable being long. Probably comes from years of buying stocks.

Yup you're right I allways have my hourly chart close to my eyes to see in which wave we are at, from there I try not to take countertrend positions unless I am at the end of a wave.

That's why today I bought the low of wave 2 for the possible wave 3 of the C wave, see the hourly charts.

Again this technique is not for everyone, I don't recommend trying it if you are not very familiar with wave counts.

[Steve Griffiths]

Hi Larry

A good call there, as Gann said "The best place to take a trade is on the correction to the first move off an important low".

I have also mentioned this as my "favourite" trade many many times over the years - this is the Wave (2) correction in Elliott Wave Terms.... To get raedy for the Wave (3) swing....

A good call there....

Steve

[Larry22]

Hello, I just wanted to keep an update on the Russell index potential wave count on the daily and weekly charts.

As you can see on the first chart (daily)we have now a 5 wave up pattern from the low of the 3 or C wave and we have past the 38% retracement of the entire move down for the first time so a very positive sign for the moment.

So it really looks as if the corrective down move is over for the moment and we are heading up.

To have a better view just take a look at the 2 other weely charts as we can clearly see the ABC with 5 waves in the C wave, of course this doesn't mean that we won't go down further but maybe not before a good correction on th eway up. You will also notice on the second weekly chart that we have attained the 38% of the last leg up.

Again time will tell, but I wasn't surprised to see the Russell going up as I called the possible bottom earlier on this post.

[Larry22]

I realized that I have mislabelled my daily wave count.

I will post my new count later today.

[Larry22]

Udated count on the daily chart of the Russell index.