RTY - two ways to treat that completed move down
Over the last six trading days RTY was moving down and made some kind of a bottom today.
Now we need to understand how that completed a-b-c down move is aligned with a bigger picture.
RTY - 15 min chart updated at 9-00 PM on 5-06-2021
This triangle account helped us to nail the bottom this morning.
Under that triangle account that a-b-c shaped decline in RTY was a subwave -d- down.
Under that count RTY has a lot of room to go higher in subwave -e- of wave ( b ) up.
I take this count with a grain of salt because of its excessive complexity.
RTY - 120 min chart updated at 9-00 PM on 5-06-2021
A much more reasonable way to consider that move down as wave -i- down to be followed by a corrective wave -ii- up. This is how that bearish macro count looks on a daily chart.
We have two potential paths for that wave ( ii ) up:
Path 1: Bearish: Technically it is possible to count that -a-b-c up bounce as all of wave ( ii ) up. That bounce has retraced almost 38.2% of the preceding decline.
But I doubt that because the preceding move down took six trading days and that bounce took only half a day.
Path 2: More whipsaw ahead:
That quick -a-b-c- up bounce was most likely subwave ( a ) up and should be followed by a corrective subwave ( b ) down.
I would favor a scenario where RTY spends more time in a pullback to the preceding decline, first in subwave ( b ) down and then in subwave ( c ) up.
RTY - 15 min chart updated at 9-00 PM on 5-06-2021
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