Might Have A Chance

We are having a big up day in the market and the $RUT is above the down trend line I highlighted in an earlier post. A close above this down trend will indicate to me that we might see the $RUT catch up the other indices.

I have a few ideas about what could happen with the $RUT, and most are for more volatility as the index chops around. But one possible scenario is for a head and shoulder pattern. The reason I think that this pattern could form is due to over head resistance as we try to push to new highs. A lot of people just want to break even from last year, and because money is being taken in and out of the market causing us to zig zag into a head and shoulders pattern. Below is a chart of the $RUT.