Exposing Ideas to the Envelope of Serendipity

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Wednesday, December 7, 2011

Russell Roulette

The chart of the Russell 2000 is working on a nicely defined, if somewhat unorthodox inverse head and shoulders pattern, which should be interesting to watch near-term. The neckline slants sharply upward, which, while not a disqualifier, raises the hurdle for confirmation to occur. Additionally, the whipsaw swings that took place as the left shoulder was forming allow for (but don't require) similar action in the right. Given the structure on the left side, I wouldn't consider the pattern to be invalid unless or until we see a decisive move below the current right shoulder low.

Trade well.

-- Brinkley
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