Some of my readers will recognize my previous work from the Reversion to the Unified Mean (RUM) Wave blog. I wrote it in relative anonymity for a couple years. That work can now be found here.
The 4 hour charts for the major indexes (below) show some pretty strong short term bullish signals. Specifically, there are bullish divergences on all three charts and the IWM (small caps) is at a strong level of support. If we see the small caps break this level, it could result in a nasty decline in the overall market.
Below, the small caps show a rocky road on with lots of ups and downs, but we have reached a level of support and the slow stochastic and RSI are at low levels. This also suggests that we should resume a push to the upside.
Finally, the DIA (below) looks very similar to the SPY with price reaching a mild level of support.