The Traderszone Network

Published in TZ Latest News 4 October, 2014 by The TZ Newswire Staff

Small Cap Head and Shoulders Top?

A debate is going on within the technical community as to whether or not the Russell 2000 Small Cap Index is in danger of completing a “head and shoulders top”. A case can certainly made for it, although it would be an unusual one. The daily bars in Chart 1 show Russell 2000 iShares forming two smaller peaks (shoulders) during January and late August. In between those two lower “shoulders” a “double top” was formed between March and early July. While it might not qualify as a textbook “H&S” top, the bearish warning is still valid.

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