Image source: Pixabay

Whether you see the action in the Russell 2000 over the past week and a half as a bullish ascending triangle or pennant, it's clear there has been a significant bullish turn in momentum since the early November gap higher (on higher volume accumulation). Obviously, we can't read too much into Black Friday's trading, but we can see a broader bullish picture on net bullish technicals.

Even relative performance against the S&P 500 looks to be turning in the bulls' favor. The only key resistance level left to break is the 200-day MA, and it is interesting that prices have stayed consistently below since the failed attempt on the inverse hammer spike.

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While the Russell 2000 appears to be set up for a bullish week, other indices reached a logical end point of their October-November rally. For the Nasdaq, a sequence of narrow range days above the August swing high has the potential to generate a 'bull trap' that would leave shorts with a trade (to the 20-day MA).

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Likewise, for the S&P 500, we have the August swing high to play as support. However, I don't see this former resistance level as having been sufficiently breached to think buyers will step in to defend it should sellers make a run at this level.

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Another reason to expect selling in the S&P 500 and Nasdaq is that both indices have been sitting on weekly timeframe resistance.

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So, we have a tale of two cities; a Russell 2000 that's ready to break higher, and a S&P 500 and Nasdaq that are poised to head lower, at least on a temporary basis.

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