Russell - approached a critical support
Russell has been the weakest index since it topped in wave ( 3 ) up in August 2018.
Russell failed to make a higher high over the top made in Sep 2018.
Off that top made at 1,742 it made a corrective looking pullback in wave ( 4 ) down structure as (A)-(B)-(C).
Now it has approached a critical support at 949.
If Russell violates that support then we should forget about another rally in wave ( 5 ) up after this correction.
That violation would essentially mean that this decline is decline of a bigger size rather than wave ( 4 ) down.
However, if that violation happens we still will expect a corrective bounce.
Normally when such important support levels get breached the market bounces strongly.
RTY - Daily chart updated on 3-17-2020
Under the Five Wave Fractal a corrective wave ( 4 ) down has to stay over the low made by the previous correction in subwave ( B ) down of wave ( 3 ) up:
If Russell violates that support then we should forget about another rally in wave ( 5 ) up after this correction.
That violation would essentially mean that this decline is decline of a bigger size rather than wave ( 4 ) down.
However, if that violation happens we still will expect a corrective bounce.
Normally when such important support levels get breached the market bounces strongly.
Below you can see what happened after Bitcoin broke under a similar support level.
It broke under the low made by subwave ( b ) down of wave ( iii ) up, then spent some time in a flat consolidation under that support and then rallied strongly to retrace 50% of the whole drop.
But as we can see on that chart of BTC, after that 50% bounce Bitcoin sliced through that level again.
Bitcoin - daily chart updated on 3-16-2020
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