Small caps have been on a tear lately, and that means: risk on! It’s been a while since I looked at the IWM chart (ETF of the Russel 2000), and it counts beautifully impulsive. My preferred count, has the major 4 bottom mid-October last year with a picture perfect zigzag correction. Then a picture perfect 5 waves up for intermediate i, followed my a shallow ii (it’s a bull market!), and then minor 1,2, and now in minute v of minor 3. Ideally this wave should target the $126-$132 zone (tagged it on Friday), followed by minor 4 down to $123-$125, and minor 5 should then ideally reach $134 to $139 to complete intermediate iii of major 5 of Primary III at the 138.2 to 161.8% extension of intermediate i, from ii. One more -larger- wave down -intermediate iv- should then find support in the 100-123.6% extension area: $128-$132 before the last and finally wave ideally with hit $140-$144 (176.4-200% extension of intermediate i, from ii). Those are the ideal, text book targets and so far there’s nothing to suggest those won’t be reached. Of course the general market will fair well during this time as well! 🙂 In addition, there’s yet no reason to sell any longs. There’s plenty of upside to be had!
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