Over the last few days, I've been wondering whether or not the markets are lining up for a post new years rally (see posts here, here and here). To that end, I think investors feelings about risk are very important. The chart about is of the IWMS, or the Russell 2000. Notice that the index has recently broken through resistance (B), although on weak volume. Prices are currently consolidating gains (A). This charts tells us that investors have a higher risk appetite. Support at line (B) is important.