Revised Target for Probable Top in Stocks: Russel 2000 Projections

In analyzing the Russel 2000 (basis the Mini-Russel continuous nearby futures), I found quite a cluster of price projections that point to the 1002/1003 area. As annotated on the chart posted below, I have identified 8 separate sets of swing points that project to a range of 994.30 to 1010.50. The majority of the projections are in the 1002/1003 area, and the average of all projections is 1003.32.

If the Russel gets into this 994 to 1010 price range, I think there is a high probability of a significant reversal in the Russel and other indicies. I am changing my stop on short positions (based on analysis posted re "DJIA - Multi-Generational Top at 15,000?") to a weekly close above 1015 basis the nearby Mini Russel futures, and will probably add to shorts above the 1000 level.

Kim Rice 5/17/13



Update:
I found a 9th projection where two major legs since the 2009 lows will be the same length at 1000 area as shown on the chart below. The range of points 6 to 11 (at 1000.61) will equal the length of points 2 to 3.



Update #2:
It's now up to 11 sets of swing-point projections to the 1000 cluster area. One of the added items is the possible fractal showing in the pink ovals: same percentage gain as 2011 rally leg targets 1000.79. The second chart below shows a close-up of the last few years and price action in the pink ovals.