If you track the Russell 2000 Cash Index, here’s something that might be of interest to you.
The Behavioral Analysis of Markets Model tracks fractals of all time frames in each individual market/symbol we cover.
In this example, I’m sharing the long-term chart (monthly bar) of the Russell 2000 cash Index. The basic point is that the index has finally made contact with the long-term speedline that was created by the emotional peaks of 1992 and 2000– both key to our work for a very specific reason.
Speedlines are, by nature, revisited during fast-market moves and are always viewed as barometers of extreme emotion– either UP or DOWN .
For example, the 1987 crash saw a perfect downside attack of the speedline created in multiple times frames, from 60 minute down to 5 minute bars.
I also included the model’s long-term forecast extending into 2032. The yellow areas represent the ZOW(s) or predicted Zone of Weakness. The levels marked as “retest” levels are price targets that are predicted to be revisited during the ZOW– matching both time and price.
This obviously paints a bleak picture of the future and would require some type of global-macro disruption, but the model was correct in calling the 2007-2009 collapse and this has my attention.
