Wednesday, October 10, 2018

Small Caps Big Pullback

It's only been a little more than a month since the Russell 2000 highs, and it's lost a lot of value since then, 7.4% as of Tue morn.
Daily Bars 
click to enlarge

It is in oversold territory, as well as hitting the Fib .382 retrace and 4th of a lesser degree support.
This suggests risk of a short term pause or bounce here. 

However given the Elliott Wave Count discussed in the previous post, medium and long term risk of a very serious nature is growing as evidenced by the deep sell off in this index.

Those familiar with Wave Theory will know the implications of a Grand Super Cycle top; a long term decline of relatively equal significance as the Cycle High lasting many decades. Since the Theory posits that markets reflect aggregate societal mood and functionality, a decline of this import would imply a society breaking down as well.
Sorry.
Now the GSC HAS lasted 80 years, so you may have some time before the walking dead come for you, but 
You can hear the crazies howling for blood tonight on your TV.

Happy Halloween 


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