The RUT was also showing a wave 2 flat, with wave c being an ending diagonal. The RUT, however, failed to make a new high this week as the other US markets did. This indicates another degree of great weakness. The long term downtrend is pretty strong as indicated by
1.) wave 2 flat. This implies wave 3 will be at least 2.6x stronger than wave 1. 2.) wave c of wave 2 flat was ending diagonal. 3.) wave 5 of c of 2 truncated.
Expect a very strong drop in all markets over the next 3-6 months as wave 3 unfolds. Wait a month for the huge consective gap down days to occur.
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