At the time of writing the Russell 2000 was literally pennies away from its all-time high, which it made this past September. Patterns in this chart lead Lang to think the index could soon be making another new all time high.
He points to something called a 'cup and handle' formation. That's where you have a deep bottoming pattern that sort of looks like a cup, and then after the rebound you get a brief pullback that kind of looks like the cup's handle.
Although the cup and handle formation is subject to interpretation, it can be one of the most reliably bullish patterns out there.
Normally, when a security breaks out from the handle, you get a big move higher. And Lang says that's exactly what the Russell 2000 is doing right now, it's busting out of the downward handle formation – something that happens before it shoots higher.
In addition, Lang identified another bullish catalyst – volume.
The Russell 2000 has had strong volume on the up days since mid November, and much lower volume on the down days. Typically strong volume on up days is a sign that big institutions are buying.
Also, Lang notes there are seasonal patterns in the Russell that could be bullish. Read More: Why Are Optimistic Investors Called Bulls?
Lang says that small caps usually tend to come on very strong at the beginning of the year. And you can see that in six of the last seven years, you caught a terrific rally in the Russell 2000 if you owned it in the first three months of the year.
(The only exception was 2008, but then again, 2008 was a pretty exceptional year all around.)
If Lang is right, then the Russell 2000 could be the best big index around, at least for the next three months.
What's the bottom line?
According to chart patterns as interpreted by Bob Lang, 2013 could be a very good year, with the Nasdaq 100 and the Russell 2000 posied to make big moves.
"You know I'm not a chart guy, but I wouldn't be at all surprised if he's right," said Cramer.
Read More: First Day of Trading Year At Least As Important As 'Cliff' Deal
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