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.
My market indicators continue to march toward the "green zone" which is a good thing for those that are on the sidelines waiting for the next bullish signal. I have drawn in a blue line on the IWM chart (below) indicating a possible inverted head and shoulders formation forming. Those are bullish in nature and would suggest a bullish move in the small caps if it continues to form next week.