Behold The Bullish Head & Shoulder

There is a bullish inverse head and shoulder pattern on the Russell 2000. A huge percentage of head and shoulder patterns (bullish and bearish) never validate so its no layup, but it still needs to be watched because if it breaks through with authority we can really rip higher.

A decisive break above the neckline would confirm a bullish January effect for small and midcap caps. In fact, SMID caps tend to significantly outperform large caps in January and February based on seasonal data back to 1928.

Stocks were not that impressive last week and the $SPX could see short term weakness to 2037- 2002 area.