Elliott Wave View: Russell 2000 (RTY) Turning Lower post FOMC

6 may 2022Short Term Elliott Wave View in Russell 2000 (RTY) suggests the decline from March 29, 2022 high is unfolding as a zigzag Elliott Wave structure. Down from March 29 peak, wave 1 ended at 1966.6 and rally in wave 2 ended at 2060.90. Index then resumes lower in wave 3 towards 1903.50 and rally in wave 4 ended at 1957.60. Final leg lower wave 5 ended at 1834.50 which ended wave (A).

Wave (B) rally is proposed complete at 1951.85. However, the Index still needs to break below ave (A) at 1834.50 to validate this view. Internal of wave (B) unfolded as a zigzag in lesser degree. Up from wave (A), wave A ended at 1908.20, pullback in wave B ended at 1867.80 and wave C higher ended at 1951.85. This completed wave (B) in higher degree. Index has turned lower in wave (C). Near term, expect wave 1 to end soon, then Index should rally in wave 2 to correct the decline from wave (B) before it resumes lower. As far as pivot at 1951.85 high stays intact in the first degree, expect rally to fail in the sequence of 3, 7, or 11 swing for further downside.