Yesterday’s leading diagonal followed by what is likely a b wave consolidation led to today’s a-wave drop and then big b-wave rally– and then what is likely a wave 1 down at the close.
The small call Russell index, in particular stayed high near the 1143 all day– u til the last 15minutes when it sold off. The end result was a red candle for the day.
In the above 30 minute chart, you can see yesterday’s leading diagonal that led to b- wave consolidation— then a-wave down and b-wave back up followed by wave 1 down.
The b-wave was quite substantial, especially in the Russell. But once the overnight level of 2055 test failed, it reversed.
The low from a few days ago of 2035 was breached as we dipped below 2032.. At this point, I believe the bullish count is highly unlikely and we should be reaching towards 2000 in the first half of the January.
The Russell kept holding up when both S&P and Nasdaq sold off during the day.
Happy New Year’s!