Automatic wave scan: as of 6 Nov 2026, the automatic daily count for Russell 2000 is Wave 5 down with a bearish bias. The count stays valid while price holds 2,875.
Current Russell 2000 wave count
Automatic wave scan Updated daily from the latest daily close (5 Nov 2026). Computer generated from swing highs and lows, not reviewed by an analyst.
Automatic scan: price is in wave 5, the final leg of a five wave decline that began at 3,070 on 14 Aug 2026. Next levels to watch are 2,657 and 2,581. The count fails on a daily close above 2,875.
Key levels
| Type | Levels |
|---|---|
| Resistance | 2 · 875 · 2 · 865 |
| Support | 2 · 716 · 2 · 723 |
| Invalidation | 2,875 |
What is Russell 2000?
The Russell 2000 was launched in 1984 and is run by FTSE Russell, part of the London Stock Exchange Group. It is the smallest 2,000 companies within the Russell 3000 index of the largest US stocks.
Small companies often rely more on bank loans and earn most of their revenue in the US. This makes them sensitive to borrowing costs and the health of the US economy.
What moves the Russell 2000 price?
- Interest rates: Small caps often rally when rates are expected to fall.
- US economic growth: Domestic demand matters more for small firms.
- Credit conditions: Tighter lending can hurt small companies.
- Risk appetite: Small caps tend to outperform in strong bull phases.
- Annual reconstitution: The index is rebuilt each year, which causes large trading flows.
How Russell 2000 moves in Elliott Wave terms
The Russell 2000 often trades in wide ranges for long periods, forming complex corrections such as triangles. When it breaks out, moves can be fast. Its swings are larger than those of the S&P 500.
Compare with the S&P 500. When small caps lag during a rally, the rally may be in a late stage.
Tips for counting Russell 2000 waves
Watch bond yields and the IWM ETF. Use wide stops due to higher volatility.
Russell 2000 key facts
Russell 2000 Elliott Wave FAQ
What is a small cap stock?
A company with a smaller market value than large firms. In the Russell 2000, most companies are worth a few billion dollars or less.
Why are small caps sensitive to interest rates?
Many small companies carry floating rate debt and depend on bank lending, so higher rates raise their costs.
When is the Russell index rebuilt?
FTSE Russell reconstitutes its US indices every year, historically in June.
Sources and further reading
- Russell US indexes (FTSE Russell)
- Russell 2000 Index (Wikipedia)
- Federal Open Market Committee (Federal Reserve)
Educational content only. Nothing on this page is financial advice or a recommendation to buy or sell. Trading involves risk and you can lose money. Elliott Wave counts are probabilities, not certainties. Read our full disclaimer and affiliate disclosure.
