A recent PBR chart shows the potential for one more swoon to hit the cyan support line and finish the count so it made me wonder if JNUG or RUSL could also be affected in the short term. The potential always exists of course.
I can't rule out any of the models shown. In fact, it would be strange to have a gap down and then just reverse right there. So, like JNUG, set stops just below where a C wave would turn into something more bearish. We have to be on our toes because the percentage swings these days are big. That can work for or against.
Did I ever mention that you should always be using EW defined stops? Yes, I think that I have done this one or two (hundred) times in this blog. If you lose big money trading with EW you either don't know how to define an entry and exit point or you aren't using stops. Don't blame the system if you can't have the discipline to follow the guidelines repeated so many times. I do it for good reason.
In any case the model below shows all the potential jumping off spots for the breakout but now puts an emphasis on watching out for the deep vee 2nd.
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