In this Elliott Wave update, we look at the latest structure in the iShares Russell 2000 ETF ($IWM). The ETF pulled back in a 7-swing corrective structure and reached short-term blue box areas, where buyers were expected to appear. As anticipated, the market reacted higher from those support zones. Therefore, buyers who entered in the blue boxes can now look to stay risk free as the rally continues to develop.
5 Wave Impulse + 7 Swing WXY correction
$IWM 1H Elliott Wave View May 3, 2026
The first blue box came at 272.01–268.27, where buyers entered and produced a bounce. After that, $IWM extended lower once more into the second blue box at 270.41–265.56. From there, buyers stepped in again and pushed the ETF higher. This confirmed that the pullback remained corrective and that the broader bullish sequence stayed intact.
Because the market already reacted higher from the blue box areas, long positions from those levels can now look to get risk free by moving stops to breakeven. This is the preferred approach once the expected reaction takes place.
In the short term, $IWM can continue to extend higher while the bullish sequence remains valid. As long as the ETF stays above the 243.72 invalidation level, the right side remains higher and dips should continue to find support.
To sum up, $IWM pulled back in 7 swings, reached the blue box areas at 272.01–268.27 and 270.41–265.56, and buyers entered as expected. As a result, the ETF has reacted higher, and longs can now stay risk free while the recovery continues.