Chart of the day

Russell2000 is returning from a channel top in ABC correction to 1730 support. A confirmed break below this level could invalidate the fifth wave extension higher and would lead to a breakdown lower.

This is still viewed as the long-term five-wave upside and a fifth wave needs to be confirmed by a bounce from here especially with a break above 1950 if we get there.

Long trades are favored to be opened here with a small risk. We favor the long trade entries at this stage as we see an ongoing price action to continue higher in the fifth wave to finish the large cycle. Short trades could come only upon a confirmed break below 1730.