RUT: Head and Shoulders Forming

The RUT is forming a Head and Shoulders pattern with the price now toying with the neckline at the 720 area. This is a bearish pattern that if completed would send the RUT down the 670 area. The last rising wedge pattern on SPX hit it's downward target, we'll see if the RUT will follow. The RUT and NDX may be joining the "Bear Party" later then the SPX and DOW. We'll have to watch to price action the next few weeks to see if it pans out.

RUT Daily Chart: (Head and Shoulders pattern has formed)