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RTY - let's look at a bigger picture
All the main US stock indices have been following the Five Wave Up fractal off the low made in December 2018. Below you can see a model Five Wave fractal aligned with RTY futures.As you can see, RTY does not look having completed the whole fractal. Most likely it has started a corrective wave ( b ) of 5 before the very final rally in wave ( c ) of 5 targeting a new higher high. That final wave ( c ) of ( v ) will finally complete the rally started off Dec’18 low. That potential for another rally after this pullback find its bottom is valid as long as RTY holds over its support at 1,497.40, the low of wave ( iv ) down. Now lets scroll down and see a micro chart.
The pullback in wave ( b ) down should be structured as a-b-c. We can count a down, b up. But the final decline in c down looks incomplete to me. The low it made at 1,566.90 at 11:50 AM looks like the bottom of micro wave iii. And subsequent pullback may be counted as a corrective wave iv up. This bearish count implying another drop in wave v of c is valid as long as it stays under 1,592. Even we we get a move targeting a lower low at 1,558-1,552 it will be difficult to say whether wave ( b ) down will be complete. That a-b-c down (black labels) could be only the first leg down needed for a large wave ( b ) down to complete. That wave ( b ) is a bearish reaction to the rally in wave ( a ) started at the low of 1,497.40 made on 25 March 2019. Normally wave ( b ) would retrace 50%-61.8%-76.4% of preceding rally in wave ( a ). In this case 50% retracement = 1,552, 61.8% = 1,539 and 76.4% = 1,523. If you come back to the upper chart with the Model fractal you will see that I showed two potential positions on the model. Again the red wave a of ( b ) is itself structured as a-b-c. Most likely we are about to complete only that first leg down in wave a of ( b ). And after a corrective wave b up we may get another stronger decline in wave c of ( b ). That c of ( b ) should be a stronger decline because it should be structured as a clean five wave down fractal in comparison to that a-b-c overlapping structure we have been witnessing this week.