In the backlink I again held with the negative model on RUSL that I first began to worry might happen when I called darned near the exact peak back in April. but after another 11+% drubbing today I finally see the potential for support. and so I picked up shares in the extended trade today at $22.94. No doubt I will keep these on a tight leash but I now count this as an expanding wedge with a 5th wave throw under and so I am willing to roll the dice on a move back up to the level of the prior 4th.
Higher potential, in fact, exists. This might be the bottom of C of 2 or it could be the bottom of 3 of 5. Only time will tell. The bearish path numbers are in blue in the zoomed out model below while the bullish path is in red. I would be much happier with the red path if the retracement were closer aligned with one of the common fib pullback levels but it is currently between the 50 and 61.8 fibs. Still, the 5 rail bumps shown above should be meaningful. My stops are at just below today's low ($22.50).
Thursday, June 4, 2015
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