RTY - we still have two different scenarios on the table
Off the Feb 2021 top RTY has been consolidating in a flat (a)-(b)-(c) down structure.
Subwave ( c ) down is supposed to subdivide into five micro waves.
The final micro wave should be wave -v- and it can not be the longest wave out of those five micro waves.
This is why the bearish count makes sense. If the last push down in rty was a micro subwave -c- of wave -iii- down then the bounce that followed was a corrective wave -iv- up. If that move up last week managed to get over 66.7% retracement of wave -iii- down then we will have to forget about that “one-more-low” scenario.
But bears managed to turn RTY down where they had to turn down a corrective wave -iv- up.(edited)
This week RTY started a new decline after bulls’ failure at the Red Target box.
Until bulls manage to get over the previous high made at 2,257 that bearish count will be a feasible scenario.
RTY - 120 min chart updated at 8-13 PM on 8-3-2021
If we forget about a questionable micro structure of the second leg down (see the red zig-zag on the chart shown above) we can make a case that the corrective (a)-(b)-(c) structure has bottomed.
If RTY bottomed in wave ( iv ) down we may attempt counting move up off the low made in mid July 2021 in the way shown on the chart below. To make that count a feasible scenario bulls have to get over the previous high made at 2,257. That would invalidate the bearish scenario and make that bullish scenario our primary one.
RTY - 120 min chart updated at 8-13 PM on 8-3-2021
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