Every topping pattern since the lows in 2009 have done little to slow stocks. We have one possible last topping pattern forming for the bears to cling on to, one last 'hope' for downside. One last chance to make this summer more than a slow, monotonous grind higher for the equity market.
The $IWM could be putting in a nice head and shoulders top. We've seen this pattern before with the $QQQ, and it was promptly negated. A break of $IWM $118.50 should be enough to make this topping pattern a moot point. I think it 'bears' watching in the short term. Everyone was quick to note $IWM weakness and April and thought $SPY would soon follow. It didn't. I think everyone is more cautious trying to puff their chests out calling for a top for the 10th time this year. I find those who have been calling for a pull back noticeably quiet these days, and coming to grips with a market that seems on autopilot.
The other issue I find slightly troubling is the equity bus seems to be filling up at a rapid clip. Everyone is a bull the last few weeks, I liked it better when everyone was doubting this market. Now it seems, even the long term 2009 bears, think this market is impervious to downside.
