On this Elliott Wave replace, we take a look at the most recent construction within the iShares Russell 2000 ETF ($IWM). The ETF pulled again in a 7-swing corrective construction and reached short-term blue field areas, the place patrons had been anticipated to look. As anticipated, the market reacted larger from these assist zones. Subsequently, patrons who entered within the blue containers can now look to remain threat free because the rally continues to develop.
5 Wave Impulse + 7 Swing WXY correction
$IWM 1H Elliott Wave View Could 3, 2026
The primary blue field got here at 272.01–268.27, the place patrons entered and produced a bounce. After that, $IWM prolonged decrease as soon as extra into the second blue field at 270.41–265.56. From there, patrons stepped in once more and pushed the ETF larger. This confirmed that the pullback remained corrective and that the broader bullish sequence stayed intact.
As a result of the market already reacted larger from the blue field areas, lengthy positions from these ranges can now look to get threat free by transferring stops to breakeven. That is the popular method as soon as the anticipated response takes place.
Within the brief time period, $IWM can proceed to increase larger whereas the bullish sequence stays legitimate. So long as the ETF stays above the 243.72 invalidation degree, the fitting facet stays larger and dips ought to proceed to seek out assist.
To sum up, $IWM pulled again in 7 swings, reached the blue field areas at 272.01–268.27 and 270.41–265.56, and patrons entered as anticipated. Because of this, the ETF has reacted larger, and longs can now keep threat free whereas the restoration continues.