TECHNICALS-IWM

Markets are set to gap open higher this morning with the SPX Futures +3, NDX Futures+3.5 and DJIA Futures +14. I bet buying pullbacks will work as it has worked every time since mid summer. Of course the market is up 6 days in a row so how high can it go? Well ask some folks who starting shorting the "extended" markets 100 SPX points ago.

I mentioned yesterday that the RUSSELL 2000 looked like a cup and handle on the weekly pattern; well guess again -as it is a more defined cup and handle on a daily chart.

It is the best performing major market index for the month of October but lagging a bit since the May highs so it may now be time to play catch up and really outperform as folks get tired of the DJIA and the big caps.