c505218304b50c59c3659f6dda43bae7-links-0–>Today we experienced a Wave 2 drop – after a Wave 1 rally over night and into today’s open – in which we finished a 5 wave move to then retraced most of the rally up – retesting the bottom of the initial mini wave 2 during that rally up—the 1908 region.
The rally was strong, but the yellow wave 2 drop was quite significant from 1941 down to 1906 — a 35 point drop through most of the day — until 2:20pm when what appears to be the 3rd wave finally turned things around.
Even with the huge swing up and down, our trade of the week initiated yesterday is on track.
The Russell today was absolutely horrible — making new lows and even the rally was quite pathetic.
Because of the Russell’s wweakness, it is much easier to play any bounce in the market via Nasdaq and S&P, which are much stronger than the Russell. The Russell can create a good short when the time is right.