Textbook Inverse Head & Shoulders Pattern

The Russell 2000 (IWM) has broken the downtrend line which has been intact since Feb 6. At the same time it has completed an inverse head and shoulders pattern with price now at the important neckline. A move above the neckline would project a continued rally equal to the height of the head to the neckline (blue arrows) near 41. The 41.00 level is also an approximate 50% retracement of the decline from Feb 6 high to the recent low. Also shown on the chart are the 5 day MA (red) 10 DMA (blue) and 20 DMA (greeen). The primary trend remains lower so be sure to protect profits and let the market action dictate how long to hold. Be prepared for anything.