US indices rise despite inflationary risks

US indices have been on a rise despite inflationary risks. Even as the S&P 500 and tech-heavy Nasdaq 100 scaled new highs, Fed chair Jerome Powell hinted that the time for tapering may soon come, around end-2021. All four major indices rallied, though the Dow and Russell 2000 remain below their recent highs. The Russell 2000, in particular, has not revisited its last peak in April 2021.

Monthly Elliott wave count

From a monthly perspective, the Russell 2000 has tentatively completed a larger wave III cycle phase since 2000. In order to confirm whether 2,360 is indeed the terminal point for the wave III cycle phase, we dissect the sub-primary wave counts within this phase.