'Rut Roh' would be the utterance of stock market bears if the Russell 2000 small cap index breaks the Bull Flag. In this summer of discontent the RUT has flagged around a support zone while the S&P 500 has jaggedly sawed its way upward.
If the markets finally gets over the obsession with Bernanke and Draghi and the QE is that is not directly forthcoming they are expected to shake off the noise and finish up the summer rally as USD continues to take a normal but significant counter trend correction.
As NFTRH has been stating since the beginning, this will be counter-trend stuff only to reset sentiment and get people on the wrong side (bearish is and has been the wrong side since May). But it is also a good trade, with the best part potentially directly ahead.
Small caps could be a 'catch up' play along with many non US markets. Here is the chart of the Russell 2k showing momentum non existent and yet MACD zero +, RSI at support and CCI having gone above -100. If the broad rally is to continue, this index (IWM is the tracking ETF) could really get in gear.