The Day Ahead: PM Edition 2022-08-11

Equity indices lost momentum early today

E-Mini Russell 2000 Futures

I was asked to take a look at RTY so decided to lead off the post with it since I have been working on this chart for the last few hours. In general, you can apply the same count here that I have on others such as the SPX easily enough and that is shown in black as the primary count. Three waves down for a corrective low in June and working on three waves up now. The alternate in red is similar in theme but would put the first major corrective bounce in March followed by the first impulse down in June and thus in a wave ii bounce now. I have to say that I’m warming up to this alternate which had a retrace at 2012.80 hold the high today. No need to decide between these two counts for now though they have slightly different terminal patterns if/when the market turns lower over the following months. First confirmation of a possible reversal lower is a drop under 1950.70 in RTY in the next several days. Short-term, I can’t conclusively rule out a press for the next resistance zone at 2048.50 or 2074.80 though worth noting that the dominant cycle is at a high and the Wave 59 9-5 study is on a possible exhaustion signal at the close yesterday.

Early targets hit today