[RUSL] update

After calling the top quite nicely and then modeling a significant breakdown I then began to wonder if what I was modeling as wave 2 down in the second link was really a B wave because it was so wide.  The jury is still out on that question but per the backlink I am looking for a bounce in RUSL "soon".   That bounce could either be wave 4 of 5 or it could be the start of a 3rd wave up but in either case it should be a strong one.

Even in the bearish case where it is just a wave 4, wave 2 was sideways and thus the odds of wave 4 being a "vee" are high due to the EW principle of alternation.  In any case, today's post is intended to give some more model specifics that I am looking at.  If this whole pullback was an a-b-c into wave 2 then see how it broke down the 50 fib on the C wave and then backtested it from below.   Assuming this holds (or the upsloping lower rail holds), one more wave down should be needed in order to complete 5 of C of 2.

At that point it becomes a strong speculative buy simply because a bounce to the prior 4th at around $29 would be a very nice percentage move for the long side.