Elliott Wave sequence in Russell (RTY_F) from May 6, 2019 high (1621.9) appears incomplete favoring further downside. The bounce to 1571.5 in the Index ended wave X. Index has extended lower in wave Y and broken below the previous low on May 14 low (1516.7). This suggests the next leg lower has started. The internal of wave Y is unfolding as a double three Elliott Wave structure. Down from 1571.5, wave ((w)) ended at 1492.9 as a zigzag Elliott Wave structure where wave (a) ended at 1522.1, wave (b) ended at 1548.9, and wave (c) ended at 1492.9.
Wave ((x)) bounce is currently in progress to correct cycle from May 16 peak as a double three. Up from 1492.9, wave (w) ended at 1513.6, wave (x) ended at 1505.40, and wave (y) of ((x)) is expected to complete at 1526.3 – 1539.47 area. We don’t like buying the Index, and as far as pivot at May 16 high (1571.53) stays intact, expect Index to pullback in 3 waves at least. Potential target to the downside is 1441.85 – 1466.32 area where cycle from May 6, 2019 peak reaches 100% extension.
RTY_F (Russell) 1 Hour Elliott Wave Chart
