In our previous post on the $IWM Russell 2000 tracking ETF instrument from September 14th that can be seen here , we were looking for a swing higher into the 50%-.618 Fibonacci retracement zone at 118.69-121.15 in wave ((Y)) of x & did see a new high on the 17th. Since the wave x completion at 118.89 on the 17th of September the decline has resumed as expected and unfolded in three larger swings with the wave (Y) reaching just past equal legs of the (W)-(X) move. However since it has not reached the .618 to .764 extension of the larger degree w-x move lower from the June 23rd highs where the usual 5th swings of a double three end, we will look for a 2nd wave (X) to fail below the previous (X) high at 114.47 for another swing lower in the wave (Z) of the triple three wave ((W)). After completion of the wave ((W)), a wave ((X)) bounce will be expected to fail below the x highs of September 17th for continuation lower in ((Y)) of y toward the equal legs to 1.236 extension area of the larger degree w-x move and as long as the wave x high remains in place that will give a target area at the 98.03 to 93.11 area.
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Lewis Jones of the ElliottWave-Forecast.com Team