Russel 21Oct12 – Last Updated 2012 11 17

The Russel by failing to break its all time high has showed it hand that it too is in a major bear market with all the rest! I have been thinking about this alot, and fractal waves have the answer - everything has its own time! But why would the Russel show it hand so late? I suspect as I have not looked at the composition that this index actually reflect the smaller manufacturing type of business - the type that actually generates wealth in contrast to the DJIA with the old megaliths that have lost touch with reality and need to outsource innovation and survive through sheer size - but even Goliath was overcome by David, and the S&P which has banks and service industries in it that only push wealth around as opposed to actually adding value and generating wealth. Pure speculation on my part at the moment but, I will look at it in the near future!

So Big Picture  OOPS WRONG CHART!!!! 20121117

The correct big picture!!!!

And the retest failure confirming the bear is with us!

I am sure you can guess where it is going!

UPDATE  20121117

Side note - The Russel has bounced hard off the ML shown above causing it to exceed its upper trend channel. However if you understand fractal waves then you would know this is not a problem as this type of price action is to be expected with the confluence of lines of overlapping fractal waves, and as expected it has rejoined its projected channel as you can see below!

This bounce will complete H-4 and D-1 is projected to be in by the 24th December in between 740 and 750 a week earlier than the S&P and Dow which are projecting late bottom dates of 31 December! So it may well be worth watching the Russel for completed wave formation as a leading indicator! It is extremely negative for the outlook of the Russel that it has so easily broken support of the Q45-1 MLLm its last remaining long term support.

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