I am looking at the Russell 2000 June 2015 contract which has been "acting funny" since the start of 2015. You may laugh when I say, "acting funny" as it all depends what we are comparing it to.
"Acting funny" is just another description for wave patterns that do not confirm perfect impulse waves which usually means they are diagonal waves. Most diagonal waves are found in any 5th wave and in any "C" wave or rarely in a leading "A" wave.
When this finishes I will use my "D" wave in intermediate degree from which we must travel into an "E" wave decline in Intermediate degree. It matters not what degree I have at this point as I can replace all of them by bumping them up one degree. What matters is that I do not allow my wave counts to gain a degree anywhere between the "D" wave and the "E" wave otherwise, I would instantly bump into a Cycle degree world.
If stocks crashed to 2009 price levels does not mean I have to increase my degree level. As a sequential counter I cannot do that no matter how tempting it may be. To confirm my "D" wave top I need a leading "A" wave and then a counter rally "B" wave in Minor degree, followed by any alternate type of a "C" 5 wave decline in Minute degree. If the markets start to go wild and produce alternate patterns that make no sense to my script, then an instant recount is due.
I can have a "high" leading "A" wave, or average or low so there are usually three choices. The book says I can have about 5 choices, sometimes they blend in so well that it looks like you had no choice at all. The 2008 crude oil crash is one example as it only produced a "Flash Counter Rally"
In this case the Russell 2000 would be great if it were to stop at the 600 price level for a half time show but all the waves could be the same size. If that turns out to be the case then I will look for a count of 7 or 11 waves.
Any future bear market in the Russell 2000 cannot go that deep as we are looking at a potential flat type bottom in a triangle.