There is interesting technical action on the Russell 2000 iShares (IWM) fund daily chart. On Monday, the bottom end of the small channel it has been trading in for the last month was penetrated by a large dark candle, the following day a narrow opening and closing range, high wick candle formed reflecting further inability to hold above channel support, and finally yesterday’s very strong bullish move created a large white candle, that closed back in the center of the channel. This three day price action resembles a morningstar reversal pattern and reflects a transition from bearishness-to-bullishness. They are of particular importance when they form near significant lows or technical levels, like the intersection of the 50 and 200 day moving averages. The rebound in the fund price has continued into the end of the week and at this point in the session, shares are retesting channel resistance. The next level of resistance above this small interior channel is the upper end of the large channel, that the IWM has been trading in for most of the year.