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RTY rallied as expected. What is the next trade?
In the previous update I predicted a rally and wrote: “it looks like it is ready to rally to another higher high.”
Yesterday, as you can see on the updated chart below, we got an impressive almost vertical move following that expected green path. That is wave c of v of ( a ) of ( v ). It still can move a bit higher to exceed the previous top made by wave a of v ( 1,594.20 reached on 12 Apr 2019 ).
At this point I would wait for a corrective a-b-c down in wave ( b ) down of ( v ) up. It is barely possible to predict how deep that ( b ) down may get. We will be watching a corrective (a)-(b)-(c) down structure tagging one of the common retracement levels: 50%, 61.8% or 76.4%. Those retracement ratios have to be applied to a rally started off the 1,497.40 low made on 25 March 2019.