The big mover last week was the Russell 2000 which has the best performing of the Dow, S&P 500 and NASDAQ. Let's take a look at the daily 5 minute chart.
a.) The index had a double bottom on Monday, which moved into an upward sloping trend (b). Along the way prices consolidated in several pennant patterns (c).
d.) Price broke the a uptrend on mid-Tuesday, but prices resumed their uptrend (d).
On Tuesday and Wednesday, prices essentially consolidated (e).
On Thursday and Friday prices formed an upward sloping trend channels.
Now, let's look at a something very important -- whether the IWMs are overbought. Consider the following chart of the IWMs.
Pay particular attention to the MACD, which I've made larger to accentuate the point. Notice the MACD is at incredibly high levels, implying the market is at extreme overbought levels right now. Notice that we have the same situation with the other averages -- extremely overbought levels:
