Quick update on Russell 2000

Per expectations set in this post, the Russell 2000 took the blue path.  It can no longer be 1 of pink 5.  It can still be that pink 5 is simply wave 1 of a larger 5 wave motive degree and if that is the case then it must reverse and move upwards starting pretty much tomorrow.  The odds of this do not seem high.  More than likely, the Russell 2000 is about to begin plummeting.

My view is that those 3 waves down from the peak will turn out to be 1-2-1-2-3-4-5-3-4-5.  In other words, a stutter step that sets us up for a big gap down in a 3rd of 3rd.  Most of the evidence points that way including the MSFT chart whose model I updated earlier today.  That 3rd wave could likely gap all the way back down below both the upper and the lower rails of the Horizontal Triangle (AKA HT).  If that happens then folks, "it's on".  That would basically be the TA equivalent of cancelling the planned Santa rally.

This is currently my primary model.  Yes, it could still be an a-b-c down off of blue 5 and then a move to a higher high would signal that wave 3 of 5 was in progress.  We have to watch that and it is my alternate model.  It it weren't for the recent MSFT break down below the top rail, I would be much more inclined to believe that blue 5 was really only 1 of 5.  But MSFT is not going down by itself folks.