Stocks surge from early Friday to early Monday and then corrected from Monday afternoon to Tuesday. A four day chart reveals a pattern similar to a 1-2 day surge followed by a 1-2 day falling flag.
In other words, this week's pullback may just be a mini correction and strength today could trigger flag breakouts on the intraday charts. Keep in mind that small-caps were showing relative strength in early August and IWM led with last week's breakout.
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