Signs that this triangle pattern can break downward
The index can climb still higher after a modest correction
The theme from when I posted these remains the same from about a week ago. I just added the next steps up in the charts to keep an I on.
The Russell 2000 is in a similar position as most of the other major indices. Probably in wave (iii) of [v] up from the 2009 low. This implies one more down/up move before any serious correction sets in.
Counting an Elliott fourth wave in the upward progression
Price starting to test the area that could prompt a breakout from the decade-long converging range.
Now that price is testing the first major resistance area, it’s time to reassess the trade.